Hong Kong Units Minimal Insurance coverage Requirement of fifty% for Licensed Crypto Exchanges

Byadmin

The Hong Kong Securities and Futures Fee (SFC) has set a minimal insurance coverage requirement of fifty% for licensed crypto exchanges dealing with clients’ property.

The Hong Kong Securities and Futures Fee (SFC) has set a minimal insurance coverage requirement of fifty% for licensed crypto exchanges dealing with clients’ property. This requirement goals to safeguard traders’ funds within the occasion of a safety breach or insolvency.

OSL Trade, one of many licensed digital asset buying and selling platforms in Hong Kong, introduced final week that the 50% insurance coverage protection minimal applies to all property beneath custody. To adjust to this requirement, OSL introduced a two-year partnership with Canopius, a syndicate of underwriter Lloyds of London, for an insurance coverage coverage protecting 95% of its customers’ property.
One other licensed crypto trade in Hong Kong, HashKey Trade, additionally took steps to guard its customers’ property by signing a crypto insurance coverage settlement with OneInfinity on November 16, 2023. This settlement offers protection for as much as $50 million to $400 million price of customers’ property and has the potential to develop protection into incidents associated to server downtime, knowledge back-up, and cargo administration sooner or later.

The SFC’s minimal insurance coverage requirement is a part of its broader efforts to manage the cryptocurrency business in Hong Kong. Since opening crypto buying and selling to retail traders final August, solely OSL and HashKey have been granted digital asset buying and selling licenses. 13 entities are at the moment making use of for such licenses. To acquire a license, candidates should cross stringent due diligence checks, together with a standard monetary audit that’s broader in scope than proof-of-reserves.

This text comprises hyperlinks to third-party web sites or different content material for data functions solely (“Third-Celebration Websites”). The Third-Celebration Websites aren’t beneath the management of CoinMarketCap, and CoinMarketCap will not be chargeable for the content material of any Third-Celebration Website, together with with out limitation any hyperlink contained in a Third-Celebration Website, or any adjustments or updates to a Third-Celebration Website. CoinMarketCap is offering these hyperlinks to you solely as a comfort, and the inclusion of any hyperlink doesn’t suggest endorsement, approval or suggestion by CoinMarketCap of the location or any affiliation with its operators.
This text is meant for use and have to be used for informational functions solely. It is very important do your individual analysis and evaluation earlier than making any materials choices associated to any of the services or products described. This text will not be meant as, and shall not be construed as, monetary recommendation.
The views and opinions expressed on this article are the creator’s [company’s] personal and don’t essentially mirror these of CoinMarketCap.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *