- Hong Kong crypto custodians and exchanges disagree on asset custody.
- Zodia’s CEO advocates for independent management of client assets.
- Only a few exchanges have complied with licensing requirements in Hong Kong.
Hong Kong’s cryptocurrency custodians and exchanges find themselves at odds over the custody of customer assets, sparking a contentious debate within the city’s burgeoning crypto industry.
At the forefront of this dispute is Zodia Custody, a company backed by the British banking giant Standard Chartered. Zodia’s CEO, Kal Chan, has been vocal in advocating for regulatory oversight specifically tailored to cryptocurrency custodians. Chan asserts that the current practice of exchanges managing both their funds and client assets could lead to perceptions of assets commingling, undermining trust in the market.
This sentiment is echoed by Zodia’s desire to work closely with regulators to develop regulations that would allow custodians to manage client assets independently, separate from exchange operations. According to Chan, such a regulatory framework would instill confidence among institutional investors, who prioritize security and transparency when…
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