Why compliance, transparency and security are key pillars of Huobi Trust’s custody strategy
As the blockchain and crypto asset space continues to grow with the rise of cutting-edge applications, large corporations and institutional investors are tapping into this space. At present, there are over ten thousand currencies in the global digital money market, and the total value of the crypto market has exceeded $ 2,000 billion. MicroStrategy CEO Michael Saylor has predicted that Bitcoin will continue to appreciate and that Bitcoin’s market value will reach $ 100,000 billion someday.
But the crypto landscape presents some challenges. Financial services are heavily regulated around the world and each region has its own standards and guidelines for compliance. From Binance to Bittrex, many crypto companies are paying the price and have even had their licenses revoked when compliance requirements were not met. For global crypto institutions looking to provide custodial solutions to clients around the world, the hurdles are particularly obvious.
Provide compliant and customizable custodian services
To ensure that they trade and invest in a regulatory compliant environment, many institutional investors look to child care providers for a diverse range of compliant and customizable child care services. Be backed and backed by Huobi Technology Holdings Limited (“Huobi Tech”) (Stock Code: 1611. HK), a company listed on the Main Board of the Hong Kong Stock Exchange Limited, which is dedicated to becoming a one-stop-shop for crypto platform- Form of asset services, Huobi Trust Hong Kong aims to provide asset custody, wealth management, private personalization, family trust and more.
“As a trust company registered under the common law system in Hong Kong, we aim to become the leading provider of crypto asset trust services in the world,” said Lily Zhang, Chief Financial Officer of Huobi Tech.
Gain trust through transparency
Another important part of crypto safekeeping is gaining the trust of owners of crypto assets. Without recognition from an independent third party, it is difficult for institutional investors to assess whether the options offered by the custodian are in the best interests of their clients.
To achieve this transparency, custody providers generally rely on attestation reports and certifications. But what’s more important than third-party documents is that child care providers demonstrate an ongoing commitment to improving their risk management protocols.
As a Hong Kong registered trust company, Huobi Trust Hong Kong is fully licensed and complies with the requirements of the Anti-Money Laundering and Terrorist Financing Ordinance (Cap. 615 of Hong Kong Laws) and obtained the Hong Kong Trust and Company Service Provider (TCSP) License (TCSP License No .: TC007494). As such, its day-to-day operations must comply with relevant Hong Kong regulations as well as AML / CTF requirements, which excludes the company from money laundering, terrorist financing and other serious risks to which suppliers conservation services might be faced.
“We realize that transparency is the key to building trust with our customers, so we do our due diligence in this area,” Zhang said.
Make safety a priority
One of the biggest concerns of institutional investors is the risk of cyber attacks. Since the theft of 850,000 bitcoins by Mt. Gox in 2013, crypto service providers have faced varying levels of security pressure. In 2020 alone, hackers stole over $ 120 million from the crypto space. In August 2021, hackers took advantage of Bilaxy’s security holes and stole more than $ 21 million worth of cryptocurrency.
With in-depth knowledge of security best practices, Huobi Trust Hong Kong says it remains focused on preventing cyber threats and protecting client assets through its in-house security infrastructure and proven risk control framework. Huobi Trust Hong Kong offers products and services designed and built for asset protection, including multi-signature cold wallets distributed worldwide, which effectively enhance the security level of customer asset storage and much more.
“As the crypto asset space evolves, we will continue to improve our product offerings in trust and custody services and ensure that the safety and security of our clients’ assets is always the top priority,” said Zhang added.
As crypto regulations continue to evolve, it is imperative that institutional investors – and all investors for that matter – and their custodial providers adhere to compliance regulations and prioritize the security of their assets. active in a volatile environment. While the crypto space is ripe for many opportunities, there are also significant risks that need to be mitigated to ensure the most secure user experiences possible.
For more information on Huobi Trust Hong Kong, visit: https://www.huobihktrust.com/
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