Authors: Carl Fernandes, Kishore Bhindi, Natalie Lam, Clara Hackney

Hong Kong SAR regulations in relation to the custody of virtual assets

There has been renewed attention on how virtual asset intermediaries hold virtual assets given the recent insolvencies of virtual asset exchanges in multiple jurisdictions. Here in Hong Kong, the new requirements on virtual asset trading platforms have just come into effect, including specifications for the custody of virtual assets. In this note, we will look at the rules which will apply to various virtual asset custody scenarios in Hong Kong, as well as highlight some further legal considerations when you are assessing virtual asset custody.