Hong Kong’s central bank is releasing new guidelines for institutions interested in offering crypto custodianship services.
The Hong Kong Monetary Authority (HKMA) published new guidelines this morning for financial institutions seeking to sell or distribute tokenized products.
According to the note, the HKMA encourages financial institutions to do their due diligence while researching potential digital asset products to protect both themselves as institutions, as well as individual consumers and investors.
The release also says authorized institutions (AIs) are permitted to introduce and sell tokenized products themselves.
The release also lays the responsibility of protecting the consumer at the feet of the AIs.
“AIs are expected to act in the best interests of their customers and make adequate disclosure of the relevant material information about a tokenized product, including key terms, features and risks, to enable the customer to make an informed decision.”
Furthermore, it is on the AIs to manage the risks of investing in crypto or tokenized products and to have approved policies, procedures, and people in place.
Finally, regarding custodial services, the release states,
“AIs that are also providing custodial services of tokenized products should meet the expected standards on digital asset custody as issued by the HKMA from time to time.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Central Bank of Hong Kong Releases Guidance on Digital Asset Custody for Institutions appeared first on The Daily Hodl.
