Hong Kong’s Securities Watchdog roll New detention requirements for licensed crypto exchanges, strengthening their pledge to protect the customer’s property, carries forward their dialect to become Asia’s Digital Asset Hub.
In a circular released on Friday, the Securities and Futures Commission (SFC) Set minimum standard for licensed virtual asset trading platforms (VATPS) Senior management responsibility, cold wallet operations, using third-party wallet solutions and covering real-time danger monitoring.
The move was found “insufficiency” in cyber security and custody controls of some existing exchanges after the target review of the regulator earlier this year. Guidelines also make the base of expectations for virtual asset custodians more widely.
Hong Kong is trying to separate itself from regional rival Singapore by coupling product expansion with difficult rules on asset conservation, which has taken a more restrictive stance on retail crypto services.
Announcement is directly in columns of infrastructure and security measures SFC’s aspirational strategyThe consensus of the coindsk in Hong Kong was unveiled in February 2025, which underlines the five-dimensional plan to address the liquidity fragmentation, regulatory arbitration and market volatility, expanding the range of regulated products and services.
The detention push follows a series of regulatory tricks this year, which aims to widen the market access by tightening the oversight.
in February, Regulator announced new licensing governance for over-the-counter trading and detention servicesWith a review of derivatives and margin trading for virtual assets. In April, it greenlights staking services for licensed exchanges and funds, although under strict asset control and risk disclosure requirements.
