Hong Kong’s central financial institution is releasing new pointers for establishments involved in providing crypto custodianship providers.
The Hong Kong Financial Authority (HKMA) revealed new guidelines this morning for monetary establishments searching for to promote or distribute tokenized merchandise.
In line 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 ample disclosure of the related materials details about a tokenized product, together with key phrases, options and dangers, to allow the shopper to make an knowledgeable determination.”
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, relating to custodial providers, the discharge states,
“AIs which can be additionally offering custodial providers of tokenized merchandise ought to meet the anticipated requirements on digital asset custody as issued by the HKMA once in a while.”
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