HKMA digital assets custody guidance for Authorized Institutions (AIs)
March 2024
On 20 February 2024, the Hong Kong Monetary Authority released a comprehensive and timely circular (the Circular) pertaining to the custody of digital assets (DAs) held on behalf of clients by Authorized Institutions (AIs). Since DAs cover not only virtual assets (VAs) but also (1) tokenised securities and (2) other tokenised assets, the Circular is of high relevance to a wide variety of tokenisation initiatives being undertaken by AIs. It is also relevant to the custody of spot VA ETFs*.
This client alert outlines the new DA custody requirements in Hong Kong and provides some highlights regarding how AIs can continue operating in compliance with the Banking Ordinance (Cap. 155) when venturing into DA custody.
* For a more lengthy analysis of the ETF regime for VAs, please refer to the most recent PwC client alerts on VA ETFs:
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