Hong Kong Moves to Bolster Crypto Custody Protections Following Worldwide Breaches
Hong Kong’s Securities and Futures Commission (SFC) has introduced stricter custody standards for licensed virtual asset trading platforms to protect client assets amid a rise in overseas security breaches.
The rules mandate cold wallets with air-gapped hardware, strict address whitelisting, robust private key controls, independent third-party audits, and staff training to prevent blind signing. These measures form the baseline for a planned licensing regime covering standalone crypto custodians, aiming to strengthen trust, security, and Hong Kong’s competitiveness as a digital asset hub.
Clever Robot News Desk 17th August 2025
