The regulatory authority in Hong Kong is implementing stricter requirements for the custody of digital assets, aiming to enhance the safety and security of funds held by licensed cryptocurrency exchanges operating in the region. This new initiative reflects a growing concern over the protection of investors and the integrity of the cryptocurrency market, as the regulator seeks to establish more robust operational standards for these platforms to ensure compliance and mitigate potential risks associated with digital asset management.
source: https://www.coindesk.com/policy/2025/08/15/hong-kong-regulator-tightens-custody-standards-for-licensed-crypto-exchanges