AsianFin -- The Hong Kong Securities and Futures Commission (SFC) has issued a circular to all licensed virtual asset trading platforms, outlining its requirements for the prudent custody of client digital assets. The move aims to lay a solid foundation for the gradual adoption of advanced custody technologies under the ASPIRe roadmap.

The latest circular highlights a range of good practice examples and sets out minimum standards that virtual asset platform operators are expected to meet. These cover responsibilities of senior management, infrastructure and operations for client cold wallets, the use of third-party wallets, and real-time threat monitoring.

Looking ahead, these standards will form the core regulatory requirements for digital asset custodians and are expected to help the industry establish a more effective framework for safeguarding client virtual assets.