Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»TRADING NEWS»Cryptocurrency Storage in Hong Kong: Compliance Changes Explained
TRADING NEWS

Cryptocurrency Storage in Hong Kong: Compliance Changes Explained

By Crypto FlexsFebruary 21, 20244 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Cryptocurrency Storage in Hong Kong: Compliance Changes Explained
Share
Facebook Twitter LinkedIn Pinterest Email

The Hong Kong Monetary Authority (HKMA) recently issued an important new circular regarding cryptocurrency storage platforms. Aimed at authorized entities (AIs), this guidance outlines a comprehensive framework for providing custody services for digital assets.

As a result, interest in digital asset trading and management service platforms has reached new heights as the cryptocurrency sector has made significant progress in Hong Kong.

The Hong Kong prototype aims to store cryptocurrency.

The HKMA’s circular is a pivotal step towards ensuring strong protection and proficient management of customer digital assets and establishing a set of standards and guidelines for AI to follow.

The key point of this new guidance is that AI must conduct a thorough risk assessment and formulate policies and controls to mitigate the risks associated with storing digital assets.

The circular emphasizes the importance of maintaining distinct governance structures, operating arrangements and effective risk management practices. An important aspect of these guidelines is that they provide protection in the event of bankruptcy by separating customer digital assets from the AI’s own assets.

“In order to properly protect customer digital assets held by AI and appropriately manage the associated risks, the HKMA considers it necessary to provide guidance on the provision of digital asset management services by AI,” the circular said.

Read more: Cryptocurrency regulation: what are the pros and cons?

This move towards greater security is further strengthened by the HKMA’s insistence that AI must adopt industry best practices and international security standards, especially when it comes to managing and protecting the seeds and private keys of digital assets.

Top 3 most cryptocurrency-ready countries. Source: Forex Offers

At the same time, the Securities and Futures Commission (SFC) has been actively involved in shaping the regulatory environment for virtual asset trading platforms (VATPs) in Hong Kong. By February 29, all cryptocurrency exchanges operating within Hong Kong jurisdiction will be required to obtain or apply for a VATP license.

These developments are critical to creating a regulated and safe environment for virtual asset investors. The SFC’s guidance emphasizes the need to trade through licensed exchanges and highlights the risks associated with unlicensed platforms. This could potentially lead to account closure if the investor does not comply by the set deadline.

Competing for cryptocurrency hub status

Hong Kong’s cryptocurrency market not only thrives in a regulated environment. Trading volume is also booming. The region traded approximately $64 billion in received cryptocurrencies between July 2022 and June 2023. Active over-the-counter (OTC) markets are largely driving this market activity.

East Asian countries by cryptocurrency value received from July 2022 to June 2023.  Source: Chainalytic
East Asian countries by cryptocurrency value received from July 2022 to June 2023. Source: Chainalytic

In particular, these OTC desks play a critical role in the city’s cryptocurrency economy, playing a critical role in facilitating large-scale transactions for institutional investors and high-net-worth individuals.

These regulatory actions by the HKMA and SFC demonstrate Hong Kong’s commitment to creating a balanced ecosystem. They aim to promote innovation while ensuring strict investor protection.

Ultimately, these developments will position Hong Kong as a digital asset hub, influencing traders and aligning with global security standards.

disclaimer

In compliance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. These news articles aim to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to check the facts and consult with experts.
This article was initially edited by advanced AI, designed to extract, analyze and organize information from a wide range of sources. We operate without personal beliefs, emotions, or biases and provide data-driven content. Articles have been meticulously reviewed, edited and approved by human editors to ensure relevance, accuracy and compliance with BeInCrypto’s editorial standards.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Like the initial Cardano, a way to reach $ 300 for Loy tokens more than $ 450K

June 25, 2025

On the 7th, NFT transaction sales volume of immutable tower

June 24, 2025

Bitcoin will protrude again, and Arthur Hayes says after dip to less than $ 100K.

June 23, 2025
Add A Comment

Comments are closed.

Recent Posts

How To Turn $100 Into $1,000,000 In 2025

June 25, 2025

Neo Pepe $NEOP Presale Passes $2M Raised With Stellar CertiK Audit

June 25, 2025

Encryption Inheritance Update: June 2025

June 25, 2025

Zama Raises $57M In Series B To Bring End-to-End Encryption To Public Blockchains

June 25, 2025

Gelato And Morpho Partner To Offer Embedded Crypto-Backed Loans For Wallets, Brokers, And Fintech Apps

June 25, 2025

Magic Newton Foundation Redefines Fair Token Launches With $NEWT

June 25, 2025

Like the initial Cardano, a way to reach $ 300 for Loy tokens more than $ 450K

June 25, 2025

AIXA Miner 2025 | AI-Driven Dogecoin Cloud Mining For Stable Daily Passive Income

June 24, 2025

Stably Introduces Stablecoin Development & Advisory Services For Institutions & Enterprises

June 24, 2025

Senior Trader Uses XRP To Start Bitcoin (BTC) Mining Machine, Earning $8,857 A Day

June 24, 2025

WF Holding Ltd Announces Entry Into The Digital Cryptocurrency Field

June 24, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

How To Turn $100 Into $1,000,000 In 2025

June 25, 2025

Neo Pepe $NEOP Presale Passes $2M Raised With Stellar CertiK Audit

June 25, 2025

Encryption Inheritance Update: June 2025

June 25, 2025
Most Popular

Bitcoin Price Rises Again: Can Bulls Drive Price Higher?

November 8, 2024

Tether (USDT) Invests $1.5 Million in Sorted Wallet to Boost Financial Inclusion

September 20, 2024

Donald Trump, once a Bitcoin skeptic, declared his support for the cryptocurrency in a Truth Social post.

May 25, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.