🚨 Hong Kong Cracks Down on Crypto Custody: New Rules to Protect Investors 🚨
🔐 Stronger Safeguards for Your Digital Assets
Hong Kong’s Securities and Futures Commission (SFC) has rolled out tough new custody requirements for licensed crypto exchanges, aiming to protect investors and position the city as Asia’s leading digital asset hub.
The move comes after a regulatory review earlier this year uncovered gaps in cybersecurity and custody practices among some platforms. The new rules demand:
✅ Senior management accountability for safeguarding client assets
🧊 Secure cold wallet operations with strict protocols
⚡ Real-time threat monitoring to detect and neutralize cyber risks
🛡️ Oversight of third-party wallet solutions to ensure reliability and compliance
📊 A Competitive Edge Over Rivals
While Singapore has taken a more restrictive approach to retail crypto services, Hong Kong is opting for expansion with strong safeguards.
This strategy is part of the SFC’s ASPIRe roadmap, which aims to tackle liquidity issues, prevent regulatory arbitrage, and manage market volatility — all while expanding the scope of regulated products.
📅 Building on Earlier Reforms
The custody measures are just the latest in a series of 2025 reforms:
📌 February: New licensing regimes for OTC trading and custody services
📌 April: Approval of staking services for licensed exchanges and funds — under strict control and disclosure requirements
🌐 Why It Matters for You?
■For investors, these rules mean more trust, transparency, and security.
■For exchanges, it means higher compliance costs but also a stronger case for attracting institutional money.
■In the long run, Hong Kong’s approach could become a benchmark for safe and scalable digital asset markets.
💬 Bottom line: Hong Kong isn’t just talking about becoming Asia’s crypto capital — it’s building the infrastructure to make it happen.