SFC Hong Kong issues stricter custody regulations for cryptocurrency platforms

The Hong Kong Securities and Futures Commission (SFC) has just implemented stricter custody regulations for virtual asset platforms, enhancing compliance standards and having a strong impact on the market. The new policy requires exchanges like Ex.io to adopt safer management processes, assign additional responsibilities to the leadership, and mandate the use of whitelisted withdrawal addresses along with hardware devices that meet security standards.

This move aims to enhance the protection of user assets but also poses significant challenges for smaller exchanges or new entities, due to the costs and infrastructure required to meet increasingly stringent regulations. Analysts believe that the market may become more concentrated around the "big players" due to their resource advantages.

The community's reaction is quite cautious, but Ex.io CEO Chen Wu believes this is an important step to raise custody standards, even though it may become a barrier for new players.