Hong Kong’s Securities and Futures Commission (SFC) has issued new guidance for virtual asset trading platforms (VATPs), aiming to strengthen client asset custody. The move responds to global security incidents and gaps identified in recent local reviews.
Wu Blockchain reported that the guidance forms part of the SFC’s ASPIRe roadmap, which outlines steps for advanced custody practices.
The Hong Kong SFC issued new guidance for virtual asset trading platforms to strengthen custody standards, citing global security incidents and gaps found in a recent review. The circular outlines minimum requirements for wallet infrastructure, access controls, and management…
— Wu Blockchain (@WuBlockchain) August 15, 2025
Enhanced Custody Standards
The SFC’s circular specifies minimum requirements for wallet infrastructure, access controls, and management oversight. It emphasizes the need for VATPs to review existing custody practices and ensure stronger protections. Dr Eric Yip, Executive Director of Intermediaries at the SFC, said, “Client asset protection must always remain a top priority for all licensed VATPs.”
The guidance sets standards for senior management responsibilities and operations of client cold wallets. Platforms using third-party wallet solutions must ensure adequate security and verification processes. The regulator also expects real-time threat monitoring and strict approval device controls.
Addressing Global Cybersecurity Concerns
Recent overseas cases showed multiple virtual asset platforms suffered losses due to custody vulnerabilities. The SFC noted weaknesses including compromised third-party wallets and insufficient transaction verification. Such incidents reveal the need for stricter controls to safeguard client funds.
Hong Kong’s review earlier this year also identified gaps in some operators’ cybersecurity practices. The SFC now requires platforms to strengthen their defenses against digital threats. This guidance aims to improve resilience and reduce risks from external attacks.
Building a Trusted Digital Asset Ecosystem
The updated standards under the ASPIRe roadmap also guide future virtual asset custodians. These expectations form the core framework for industry-wide custody practices. According to Dr Yip, platforms can use the guidance as a practical reference to improve security and operational procedures.
The SFC emphasizes that reliable custody is essential for a sustainable digital asset market. The regulator’s approach aims to create a more secure environment for clients. These measures will influence how VATPs manage assets and address potential threats.
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