The Hong Kong Securities and Futures Commission (SFC) has immediately issued an effective guide to cryptocurrency preservation standards, which identifies security requirements and prohibits intelligent contracts with cold wallet implementation.
In a circular released On Friday, the regulator outlined prescriptive controls for licensed carers of virtual ownership. These include a certified hardware security module, which allows backwards only to white addresses and maintaining a 24/7 security operation center to monitor systems, networks, wallets and infrastructure.
The environment in which private keys are used to sign transactions should also be air-air and physically safe, with keys formed and kept offline. The regulator recommends “strict control of multi-factor physical access.”
“Continuing, these standards will be the main expectations for those who provide virtual virtual custodian services, and will help to stimulate a consistent framework for the preservation of virtual ownership throughout the industry,” said the circular.
Related: Animoca and Standard Chartered Form Stablecoin Venture in Hong Kong
There is no intelligent contract for cold wallets
One of the most noticeable changes is the ban on Smart contracts In cold wallets. Circular says that “cold wallet implementation should not include smart contracts with public blockchains to reduce potential online attacks of vectors associated with intelligent chain contracts.”
https://www.youtube.com/watch?v=tzdgwhx2xtts
Wise contracts are widely used by institutional custodians for both hot and cold purses. For example, the bitgo Outlined This smart-contract multisig model for account-based chains.
Safe, formerly known as Gnosis Safe, is another smart contract -based contract -based solution, with a Mesari Report stating that the $ 72 billion will be held in more than 25 -deployed smart accounts As the third quarter of 2024.
Public -based in -the -US Crypto Exchange Coinbase Called It was safe to “the leading provider” of Multisig Services in March 2024, emphasizing the potential push for the Hong Kong transfer industry.
Related: Hong Kong Stablecoin Stocks Slide As new policies occur, experts see healthy resetting
Hong Kong is building a crypto hotspot
Hong Kong is emerging as Asia’s crypto hotspot by rapidly moving to policies and accessing markets. Regulators have approved and Spot Bitcoin and Ether ETFS launched in April 2024providing institutions a following way to obtain exposure, and Aspire Roadmap was laid out in February To expand access while tight care throughout the precautions, market products and structures.
At the same time, the special administrative region of China continues to expand the licensed exchange roster and locked an entire Stablecoin regime. More Virtual Asset Trading Platform License has been added in late 2024and Hong Kong’s Law Stablecoin became effective on August 1with an upcoming public enrollment of licensed providers.
Magazine: Hong Kong hoses down Stablecoin Frenzy, Pokémon in Solana: Asia Express
