Hong Kong Securities and Futures Commission proposes 50% minimum insurance requirement, how will licensed exchanges OSL and HashKey respond?
Table of Contents
Table of Contents
Hong Kong Exchanges Require 50% Minimum Insurance
According to a report by Cryptopolitan, the Securities and Futures Commission (SFC) of Hong Kong has set a minimum insurance requirement of 50% for licensed cryptocurrency platforms to safeguard user assets held by these exchanges. This measure aims to protect users from potential cybersecurity vulnerabilities or bankruptcy.
The only two licensed exchanges in Hong Kong, OSL and HashKey, have taken steps to comply with this regulation.
95% of User Assets Under OSL Insured
OSL recently announced a two-year partnership with insurance company Canopius to provide insurance coverage for 95% of its user assets.
Investors in the parent company of Hong Kong licensed exchange OSL, Foresight VC and BitGetX, are making strategic moves.
OSL π€ @CanopiusGroup β Elevating Digital Asset Safety π
π‘οΈIn partnership with #Canopius, we are revolutionising secure #digitalasset trading. Our enhanced insurance coverage signifies a major stride towards a #safer, more #transparent era in #digitalfinance.
Discover more π pic.twitter.com/LNwiAChd3J
β OSL (@osldotcom) January 26, 2024
HashKey Offers Up to $400 Million Insurance
Last November 16, HashKey signed a cryptocurrency insurance agreement with OneInfinity, providing coverage ranging from $50 million to $400 million, encompassing a range of cybersecurity vulnerabilities such as server downtime, data backups, and load management events.
OneInfinity, founded in 2022 by the OneDegree Group, focuses on businesses in the Web3 space.
13 Other Operators Applying Besides OSL and HashKey
According to the Securities and Futures Commission website, only OSL and HashKey currently hold licenses for virtual asset trading, while 13 other entities are still in the application process.
