• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
Hong Kong
Nexo

Hong Kong Regulation Set to Benefit Custody Company InVault

Melanie Kramer by Melanie Kramer
2 years ago
in News, News teaser
0

Cryptocurrency custody services company InVault, from Shanghai, has launched in Hong Kong just in time to take advantage of the special administrative region’s new rules for cryptocurrency exchanges and asset managers. 


At the start of Nov 2018, Hong Kong’s Securities and Futures Commission (SFC) issued guidance on the regulatory standards expected of cryptocurrency exchanges, platform operators, and fund managers. It’s also working on a future “conceptual framework” for the regulation of “trading platform operators.”

Near Complete Insurance Cover is Now Required

As part of the new guidelines, cryptocurrency exchanges and asset holders must have comprehensive insurance for investors’ funds to prevent losses — which is where cryptocurrency custodial services for high-volume coin-holding businesses come into play. However, cryptocurrency businesses can also look to self-custody and hot wallet storage, as long as they have the required level of insurance. For exchanges storing cryptocurrencies online in “hot wallets,” this is 100% coverage. The regulator says:

The SFC generally expects that the insurance policy would provide full coverage for virtual assets held by a Platform Operator in hot storage and a substantial coverage for those held in cold storage (for instance, 95%).

InVault currently holds around one million ether in custody in mainland China and has announced it is the first custody service operator to enter the market in Hong Kong. The company is backed by venture capital fund Matrix Partners China which has invested nearly $6 billion in the crypto-storage business. It has reportedly gained a new “trust license” from the SFC allowing it to offer a fully automated service in the region as of December.

hong kong, blockchain

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

A Bridge Between Cryptocurrency and Traditional Asset Protection

InVault’s founder Kenneth Xu told the South China Morning Post (SCMP) that he believes trusted custodial services will provide a regulated “conduit” between the cryptocurrency space and traditional financial systems. He revealed that InVault is now in discussions with a number of insurers to provide the coverage required by the Hong Kong regulator as part of its services. Xu says the challenge for insurance companies is to accurately measure risk and price premiums accordingly.

InVault, and Xu, now expects much of the demand for its custody services to come from Hong Kong and also Singapore under new regulations.

Singapore’s regulators, the Monetary Authority of Singapore (MAS), discussed its approach to cryptocurrency classification and openness to cryptocurrency adoption at the Singapore Consensus 2018 September. MAS also revealed new regulation to cover cryptocurrency service providers last week.

Cryptocurrency custody services protect investor’s assets with physically secured storage for client’s private cryptocurrency wallet keys — which can often be forgotten, lost, stolen, and hacked. SCMP also refers to incidences of cryptocurrency exchange employees accessing and stealing from, client wallets.

The SFC’s new guidelines seek to protect investors in Hong Kong as well as adding some formal regulatory oversight to the burgeoning industry. SFC Chief Executive, Ashley Alder, said in the release revealing the new regulation:

We hope to encourage the responsible use of new technologies and also provide investors with more choices and better outcomes.

Do you think all cryptocurrency exchanges and operators should be required to have comprehensive insurance or use the services of a custody company? Let us know in the comments below!


Images courtesy of Bitcoinist archives.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Melanie Kramer

Melanie Kramer

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.