The two letters, each several pages long, mainly urge common sense and adherence to widely accepted standards.
The Hong Kong Monetary Authority (HKMA) issued letters to the heads of authorized institutions (AIs) on Feb. 20 concerning tokenization and custody of digital assets.
In one letter, the HKMA wrote that it was setting out standards for the provision of custody of customer assets, “with reference to international standards and practices.” They apply whether the AIs receive the assets from providing standalone services or through other activities.
The annex to the letter presents standards in eight categories. The standards are mainly highly generalized statements, such as “Senior management and staff engaging in the AI’s custodial activities and related control functions should possess the necessary knowledge, skills and expertise to discharge their responsibilities.”
