Hong Kong’s SFC Orders Tighter Crypto Custody Standards Following Global Breaches

The Securities and Futures Commission of Hong Kong has set stricter custody expectations for licensed virtual assets trading platforms, which positions these requirements as a basic line for an upcoming licensing regime that would cover in -standing virtual Custodians for assets.

The relocation, reportedly for the protection of customer’s assets, was done to promote Hong Kong “a competitive, sustainable and confidential digital assets eco system,” Dr. Eric Yip, executive director of the intermediaries, in one rack On Friday.

The SFC has been approached for comment.

According to the SFCs circularSent according to licensed virtual assets -trading platforms, reports from “multiple cyber security incidents” on overseas plates in the past year have increased considerably, which causes “substantial loss of customers”.

The failures stem from vulnerabilities of wallet system and weak associated checks, said it. The SFC said it has set the new minimum guardian standards and good practices for licensed Batps, in response to those infringements and its own assessment.

The rules require a robust cold walking infrastructure and activities, supervision of third -party portfolios, operating elements for private keys and similar references, Air -Happed Hardware, Systematic Transaction Figification, Strict address, Whitelisting, Independent External Rathading and Staff Training.

The supervisor has a separate one Awaiting proposal Where everyone who deals with the virtual assets of customers or the instruments that make transfers possible require a permit.

The standards have an immediate effect on BTATPS and their associated entities. Operators are also instructed to work around the clock, with the same bar that is expected to anchor the planned license regime of the custodian.

The committee also intends to set a bill shortly thereafter, with transitional arrangements, accelerated approvals for companies that have already been assessed, and higher application and annual costs under a model for user payments. Public comments close on August 29, 2025.

New guidelines from the committee follow the regulations roadmap Earlier in February revealed, aimed at strengthening its virtual assets ecosystem, and only comes a few weeks after the launch of a Stablecoin License Regime At the beginning of August.