Hong Kong Tightens Digital Asset Custody Regulations
The **Securities and Futures Commission of Hong Kong (SFC)** has announced new stringent standards for digital asset custody in response to an increase in security breaches.
Key measures:
- Enhancing cold wallet security and key controls
- Continuous security monitoring and external audits
- New licensing requirements for asset custody
Background:
- Aligns with the February 2025 plan to regulate digital assets
- Follows the launch of stablecoin licensing in August
Important dates:
- Comments accepted until August 29, 2025
- Upcoming legislation to activate licenses