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Hong Kong’s central financial institution is releasing new tips for establishments keen on providing crypto custodianship companies.
The Hong Kong Financial Authority (HKMA) revealed 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 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 buyer on the toes of the AIs.
“AIs are anticipated to behave in the most effective pursuits of their clients and make sufficient 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 determination.”
Moreover, it’s on the AIs to handle the dangers of investing in crypto or tokenized merchandise and to have authorised 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 occasionally.”
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