Hong Kong’s SFC Imposes Stricter Custody Rules for Crypto Platforms

Hong Kong's Securities and Futures Commission (SFC) has introduced rigorous new custody standards for licensed VIRTUAL asset trading platforms (VATPs), marking a significant step toward institutional-grade security in the digital asset sector. The measures mandate enhanced wallet infrastructure, real-time threat monitoring, and explicit senior management accountability—a direct response to global cybersecurity vulnerabilities exposed by recent custody failures.

The guidelines form part of the SFC's ASPIRe roadmap, specifically its 'Safeguard' pillar, which aims to fortify Hong Kong's position as a regulated hub for crypto innovation. Cold wallet operations receive particular scrutiny, with requirements designed to mitigate risks associated with offline storage of digital assets.