Guidelines for Digital Asset Custodial Services in Hong Kong

This document is a compliance brief that outlines the guidelines for digital asset custodial services as mandated by the Hong Kong Monetary Authority (HKMA). It details the expected standards for authorized institutions (AIs) engaging in digital asset-related activities, particularly the provision of custodial services. The HKMA has issued guidance that includes eight categories of expected standards aimed at safeguarding client digital assets. AIs are required to confirm compliance with these standards within six months of the guidance issuance. The document also discusses risk management considerations related to the use of distributed ledger technology (DLT), emphasizing the importance of governance, application design, and ongoing maintenance. Thales provides solutions to assist AIs in meeting these guidelines, including secure management of cryptographic keys and compliance with regulatory requirements. The brief highlights the role of Thales' hardware security modules in ensuring the security and integrity of digital assets held by AIs.