Hong Kong’s central financial institution is releasing new tips for establishments involved in providing crypto custodianship providers.
The Hong Kong Financial Authority (HKMA) printed new guidelines this morning for monetary establishments searching for to promote or distribute tokenized merchandise.
In keeping with the be aware, 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 customers and buyers.
The discharge additionally says approved establishments (AIs) are permitted to introduce and promote tokenized merchandise themselves.
The discharge additionally lays the duty of defending the patron on the ft of the AIs.
“AIs are anticipated to behave in one of the best pursuits of their prospects and make enough 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 choice.”
Moreover, it’s on the AIs to handle the dangers of investing in crypto or tokenized merchandise and to have accredited insurance policies, procedures, and folks in place.
Lastly, concerning custodial providers, the discharge states,
“AIs which are additionally offering custodial providers of tokenized merchandise ought to meet the anticipated requirements on digital asset custody as issued by the HKMA every so often.”
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