Hong Kong’s central financial institution is releasing new pointers for establishments excited by providing crypto custodianship companies.
The Hong Kong Financial Authority (HKMA) revealed new pointers this morning for monetary establishments searching for to promote or distribute tokenized merchandise.
In keeping with the notice, the HKMA encourages monetary establishments to do their due diligence whereas researching potential digital asset merchandise to guard each themselves as establishments, in addition to particular person shoppers and traders.
The discharge additionally says licensed establishments (AIs) are permitted to introduce and promote tokenized merchandise themselves.
The discharge additionally lays the accountability of defending the patron on the ft of the AIs.
“AIs are anticipated to behave in the very best pursuits of their prospects and make satisfactory disclosure of the related materials details about a tokenized product, together with key phrases, options and dangers, to allow the client to make an knowledgeable resolution.”
Moreover, it’s on the AIs to handle the dangers of investing in crypto or tokenized merchandise and to have accepted insurance policies, procedures, and folks in place.
Lastly, relating to custodial companies, the discharge states,
“AIs which are additionally offering custodial companies of tokenized merchandise ought to meet the anticipated requirements on digital asset custody as issued by the HKMA infrequently.”
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