Hong Kong hardens its custody standards for crypto exchanges, covers cold wallets

By Hannah Pérez

The new standards of the Hong Kong regulator cover the responsibilities of cold wallet infrastructure, the supervision of third party wallets and the monitoring of real time threats.

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• Hong Kong regulator publishes new standards for cryptocurrency custody.
• It covers aspects such as cold wallets, third -party wallet supervision and real -time monitoring.
• Standards prohibit intelligent contracts in cold wallets.
• The objective: protect customers from cyber threats and position Hong Kong as I had crypto.

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The Hong Kong Securities and Future Commission (SFC) has issued a new circular that establishes minimum more strict standards for cryptocurrency custody on license trade platforms (VATPS), with the aim of promoting good practices and strengthening the protection of customer assets in increasing global risks.

The circular responds to weaknesses identified in previous reviews and international incidents that have exposed vulnerabilities in cyber security and is part of Hong Kong’s broader effort to become a Digital Assets Center in Asia.

According to the official circular, Vatp operators must critically review their custody practices, covering aspects such as the responsibility of senior management, cold wallet infrastructure, supervision of third -party wallet solutions and monitoring threats in real time. The norms enter into force with immediate effect.

“In the future, these standards will also constitute the central expectations for virtual asset custody service providers, and will help promote a consistent framework for custody of virtual assets throughout the industry throughout the industry“, Says the official statement of the Hong Kong regulator.

New standards for cryptocurrency custody

The key requirements include the use of certified hardware safety modules (HSM) for key management, retreat restriction only to white list addresses and maintaining a 24/7 safety operations center to monitor systems, networks, wallets and infrastructure.

Private keys should be generated and stored outside line in isolated and physically safe environments, the regulator entrusted, strongly recommending “Strict multifactorial physical access control”

One of the most notable measures is the prohibition of intelligent contracts in cold wallet implementations. “Cold wallet implementations should not include intelligent contracts in public blockchains To minimize possible online attack vectors associated with intelligent chain contracts“, Indicates the circular.

This initiative is part of the SFC “Aspire” strategy, presented in February 2025 during the event Consensus 2025 In Hong Kong, which seeks to address liquidity fragmentation, regulatory arbitration and market volatility while expanding regulated products. The directed review of the SFC earlier this year revealed “deficiencies”In cybersecurity and custody controls of some platforms, which motivated the creation of new guidelines.

Hong Kong seeks to become Asia’s hubr

The movement is part of an effort of several years of Hong Kong to establish the city as a friendly center with the cryptocurrencies that rival Singapore and Dubai. Local regulators have been adopting progressive regulatory measures for the sector in recent years. It adds for example to other advances, such as the approval of funds quoted in the stock market (ETF) of Bitcoin in cash last year and the licensing regime for issuing Stablecoins cash since August 1, 2025.

“In order for Hong Kong to promote a competitive, sustainable and reliable digital asset ecosystem, the protection of customer assets must always be an absolute priority for all Vatp licensed, which can take advantage of the practical guide of the SFC to intensify their custody practices, especially in the middle of higher risks worldwide“, Said Dr. Eric Yip, Executive Director of Intermediaries of the SFC, in the statement.

With these norms, Hong Kong continues to attract cryptocurrency businesses under a robust regulatory framework, contrasting with the prohibition in Continental China. SFC emphasizes that asset protection should be a priority to promote a competitive and reliable ecosystem; especially in the face of growing cyber threats.

The news media The Block He stressed that Julio registered a Increase in cryptocurrency safety violations, with hackeos related losses raising $ 142 million, – a 27% more than in June, according to Peckshield.

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Article written with the help of AI, edited by Hannah Pérez / Diariobitcoin

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