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News Explorer — Hong Kong Regulator Stresses Risk Assessment and Compliance in Crypto Custody Guidance

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Feb 21, 2:14 am
The Block

Hong Kong Regulator Stresses Risk Assessment and Compliance in Crypto Custody Guidance

The Hong Kong Monetary Authority (HKMA) has issued guidelines for tokenization and digital asset custody for authorized institutions. These guidelines require institutions to conduct comprehensive risk assessments, allocate sufficient resources for governance and risk management, establish internal policies to address conflicts of interest, and maintain contingency plans for the protection of client digital assets. The HKMA also emphasizes the need for full disclosure of risks and compliance with anti-money laundering regulations.

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