BlockBeats News, April 7th, Hong Kong Securities and Futures Commission (SFC) Executive Director of Investment Products Clara Chiu said today at the Hong Kong Web 3.0 Expo that the commission will issue a circular today allowing licensed virtual asset trading platforms to provide custody services, including offering custody for virtual asset spot ETFs.
Custody allows investors to lock up their virtual assets to support the blockchain network and receive rewards. However, due to the risks involved, the SFC will implement additional safeguards, including requiring licensed platforms to safeguard the pledged virtual assets and setting limits on the proportion of virtual asset spot ETFs that can be pledged to manage liquidity risk.
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