{"id":42492,"date":"2025-08-16T06:46:35","date_gmt":"2025-08-16T06:46:35","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=42492"},"modified":"2025-08-16T06:46:35","modified_gmt":"2025-08-16T06:46:35","slug":"hong-kong-reacts-to-global-crypto-hacks-sfc-sets-stricter-exchange-custody-rules","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=42492","title":{"rendered":"Hong Kong Reacts To Global Crypto Hacks: SFC Sets Stricter Exchange Custody Rules"},"content":{"rendered":"
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Hong Kong\u2019s Securities and Futures Commission (SFC) has rolled out stricter custody rules for licensed crypto exchanges to protect user assets.<\/p>\n

Hong Kong SFC\u2019s Crypto Custody Overhaul Targets Wallet Weakness<\/h2>\n

In a website announcement<\/a>, the Hong Kong SFC revealed a new circular addressing minimum custody requirements for all licensed virtual asset trading platforms (VATPs). The document touches on a variety of topics like cold wallet management and real-time threat monitoring, and also sets out examples of good practices.<\/p>\n

The SFC has placed these standards in response to overseas cybersecurity incidents that exposed vulnerabilities in the wallet management systems of crypto exchanges. According to a Hacken report<\/a>, the industry lost $3.1 billion to attacks in the first half of 2025 alone.<\/p>\n

The Hong Kong regulator also conducted a targeted review earlier this year to test VATPs against similar vulnerabilities. \u201cWhilst most Platform Operators reported having fundamental control measures in place, certain responses were deemed inadequate,\u201d noted the circular.<\/p>\n

VATPs aren\u2019t the only ones expected to meet the requirements in today\u2019s document release. The same standards will also apply to virtual asset custodians, and the SFC notes these guidelines will serve as the prerequisites for transitioning to more advanced custody technologies.<\/p>\n

Dr Eric Yip, Executive Director of Intermediaries at SFC, said:<\/p>\n

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In order for Hong Kong to foster a competitive, sustainable and trusted digital asset ecosystem, client asset protection must always remain a top priority for all licensed VATPs, which can leverage the SFC\u2019s practical guide to step up their custody practices especially amid heightened risks globally.<\/p>\n<\/blockquote>\n

The move has followed other regulatory efforts by Hong Kong to present itself as more crypto-friendly. In May, the city\u2019s stablecoin bill passed legislature and went into action at the start of this month.<\/p>\n

Big names like Standard Chartered in its joint-venture<\/a> have lined up to apply for a stablecoin license under this rule. The first batch of approvals isn\u2019t expected to come until 2026, however, according to reports<\/a>.<\/p>\n

Bitcoin Price Has Slipped Under $118,000<\/h2>\n

The number one crypto, Bitcoin, took a blow on Thursday as its price plunged below the $118,000 mark. The fires of volatility were fanned by an interview involving US Treasury Secretary Scott Bessent, who said<\/a> the government doesn\u2019t plan to buy the digital asset for its Strategic Reserve and will instead build it using confiscated assets.<\/p>\n

\"Bitcoin<\/p>\n

A few hours later, however, Bessent took to X<\/a> and clarified that the Treasury is also open to exploring budget-neutral ways of acquiring more of the asset. From the chart, it\u2019s visible that BTC\u2019s price made some recovery following the statement, but it didn\u2019t last long as the coin has dropped back to $117,800.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Hong Kong\u2019s Securities and Futures Commission (SFC) has rolled out stricter custody rules for licensed crypto exchanges to protect user assets. Hong Kong SFC\u2019s Crypto Custody Overhaul Targets Wallet Weakness In a website announcement, the Hong Kong SFC revealed a new circular addressing minimum custody requirements for all licensed virtual asset trading platforms (VATPs). The […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-42492","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/42492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42492"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/42492\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}