Hong Kong SFC and HKMA Tighten Crypto Custody Standards Under Aspire Roadmap Amid Stablecoin Volatility and Rising Scams

Hong Kong's Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) have jointly issued warnings about market volatility driven by hype around stablecoins. In response to recent global security breaches and vulnerabilities identified in a recent review, the SFC has introduced stricter guidelines for virtual asset trading platforms. These new rules, part of the Aspire Roadmap, mandate enhanced custody standards including minimum requirements for wallet infrastructure, access controls, and management oversight. The move aims to address growing risks in the crypto sector and protect investors, particularly as a study highlights that residents of Hong Kong are more affected by scams compared to those in mainland China and Taiwan.