The Hong Kong SFC has ordered local crypto exchanges to insure at least 50% of client assets
The Hong Kong Securities and Futures Commission (SFC) has introduced a mandatory requirement for cryptocurrency exchanges to the amount of insurance coverage for user deposits.
The SFC has established a minimum deposit insurance level of 50% for licensed cryptocurrency exchanges. According to the Commission's statement, this requirement will ensure the protection of users and reduce the consequences of potential violations of security measures or insolvency of cryptocurrency platforms.
The administrations of two popular licensed platforms for trading virtual assets in Hong Kong — OSL Exchange and HashKey Exchange — commented that their companies had adapted in advance to the new requirements of the SFC.
In particular, OSL Exchange entered into a two-year partnership with the Canopius syndicate of insurers and insured 95% of its users' assets. HashKey Exchange, through a crypto insurance agreement with OneInfinity, has provided insurance coverage of up to $400 million, as well as comprehensive protection that is not limited to standard security breaches and insolvency, but extends to server downtime, data backup and load management incidents.
Source: bits.media
