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InVault launches the cryptocurrency custody platform in Hong Kong • Live Bitcoin News

InVault recently launched its cryptocurrency custody platform in Hong Kong. The Shanghai-based start-up said it was the first to offer custody services for digital goods in Hong Kong as a result of new laws issued by local financial regulators.

First Custodian of cryptocurrencies in Hong Kong

According to South China Morning Post (SCMP)InVault recently obtained a new trustee license to provide fully automated cryptocurrency custody services in Hong Kong. The company founder and CEO, Kenneth Xu, said that the trust companies of cryptocurrencies would soon become common in the industry.

In an interview with SCMP, Xu said:

We believe that at a global level the custodians of cryptocurrency assets are regulated and managed under a trusted license.

Already, InVault offers its services to some customers in mainland China. The company currently provides custody for around $ 1 million of Ethereum tokens. InVault holds private keys for funds in physical deposits protected on behalf of clients.

According to reports, the company has about 40 employees based in Shanghai. It is supported by Matrix Partners China, which has invested over $ 5 million in the business. As part of its custody services offer, Xu says the company is in talks with a couple of insurers to provide coverage for funds held in custody.

For Xu, the trustees have a fundamental role in the emergence of cryptocurrency. With the regulatory landscape becoming more mature and players with a large amount of money increasingly attracted to the industry, solid security tools are needed to ensure security and security.

In Hong Kong, the Securities and Futures Commission (SFC) is already taking steps to strengthen its regulatory framework on cryptocurrency. In October, the Commission required that fund managers dealing with cryptocurrencies should use authorized custody providers, exchange cryptocurrencies or develop custody solutions.

Custodial instruments and institutional investors

The need for custodial tools is a common topic of many commentators in the virtual currency space when it comes to the entry of institutional investors. In 2018, some companies have already taken steps to conquer that part of the market.

Coinbase presented its custody platform – Coinbase Custody and managed to get a license from the DFS in New York.

In October, perhaps in one of the most significant developments of 2018, Fidelity also announced its incursion into the cryptocurrency space.

How critical is the need for robust custody instruments in the cryptocurrency sector? Let us know your thoughts in the comments section below.

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Tags: custody of cryptocurrency, Custodial Service, Hong Kong, InVault, Kenneth Xu

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