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Security and transparency are at the center of the cryptographic space. As Hong Kong strongly warns cryptographic companies to protect their virtual assets, there are likely to be lucrative opportunities for custodians. InVault, an encrypted startup based in Shanghai, is launching its own crypt services in Hong Kong. The initiative is more likely to benefit from the new rules of the SFC. Released in early November, the Securities and Futures Commission (SFC) in Hong Kong issued a new licensing regime that requires exchanges and fund managers to secure their crypto assets.
The Securities and Futures Commission (SFC) of Hong Kong has declared;
The SFC generally expects the insurance policy to provide complete coverage for virtual assets held by a platform operator in hot storage and substantial coverage for those held in cold storage (for example, 95%).
Hong Kong – A potential region for InVault custody service
InVault has already reached 1 million Ethereum under custody in China. As a result, the company has acquired a new trusted license from SFC and will start its services in December. As the company becomes fully compliant with new regulations, it expects the company to expand its reach across the region. With the new license, InVault will be able to offer its custody services within the nation freely and legally.
The Rise of InVault As Crypto Custodian Services
Since InVault has acquired the trusted license, the SCMP articles point out that Kenneth Xu, founder and CEO of InVault, believes that the trusted custody service can offer a regulated "conduit" between cryptographic companies and formal financial systems. Alongside InVault, Coinbase and BitGo in the United States are the leading players in cryptocurrency custody services where ex works both as cryptocurrency and as a custody company managed by separate trust companies.
Xu also stated that it is in talks with two "medium-sized" insurers that could provide coverage that the company will use as part of its custody services. Continue to discuss the risk factor for insurers. The article reads;
The biggest challenge for insurers today is how to accurately measure the risk profile of a custodian and its internal systems in order to evaluate the insurance premium against cryptocurrency as a result.
Xu encourages Singapore and Hong Kong because it believes that these two nations have fairly clear regulations. It is expected that Aisa's institutional custody services will join these regions. At the top, Singapore and Hong Kong have a stronger credit rating, while the former has AA + with a stable outlook and this latter is rated AAA with a stable outlook assigned by the business intelligence company of Standard and Poor.
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tabassum
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Security and transparency are at the center of the cryptographic space. As Hong Kong strongly warns cryptographic companies to protect their virtual assets, there are likely to be lucrative opportunities for custodians. InVault, an encrypted startup based in Shanghai, is launching its own crypt services in Hong Kong. The initiative is more likely to benefit from the new rules of the SFC. Released in early November, the Securities and Futures Commission (SFC) in Hong Kong issued a new licensing regime that requires exchanges and fund managers to secure their crypto assets.
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tabassum
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Coingape
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication has no responsibility for personal financial loss.
