Hong Kong sets licensed crypto exchange insurance requirement to 50%
Firms must provide insurance to protect users’ assets in addition to undergoing rigorous audits.
Hong Kong’s Securities and Futures Commission has set a minimum insurance requirement of 50% for licensed crypto exchanges handling customers’ assets.
As disclosed by OSL Exchange last week, the 50% insurance coverage minimum applies to all assets under custody. At the same time, OSL announced that it had signed a two-year partnership with Canopius, a syndicate of underwriter Lloyds of London, for an insurance policy covering 95% of its users’ assets.
HashKey Exchange, another licensed virtual asset trading platform in Hong Kong, also signed a crypto insurance agreement with OneInfinity on Nov. 16, 2023, with the potential to expand coverage into incidents related to “server downtime, data back-up, and load management” in the future. According to local news reports, the coverage guarantees protection for up to $50 million to $400 million worth of users’ assets.
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