How are licensed exchanges OSL and HashKey coping with Hong Kong’s Securities and Futures Commission’s 50% minimum insurance requirement?

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Hong Kong Stock Exchange requires a minimum of 50% insurance coverage
95% of user assets under OSL are insured
HashKey has a maximum of $400 million insurance coverage
13 other entities are currently applying, besides OSL and HashKey
Hong Kong Stock Exchange requires a minimum of 50% insurance coverage
According to Cryptopolitan, the Securities and Futures Commission (SFC) of Hong Kong has imposed a minimum insurance requirement of 50% for user assets held by licensed cryptocurrency platforms to ensure the safety of investor funds and protect users from potential cybersecurity vulnerabilities or bankruptcy risks.
Both of Hong Kong’s licensed exchanges, OSL and HashKey, have made preparations accordingly.
95% of user assets under OSL are insured
OSL recently announced a two-year partnership with insurance company Canopius, through which they will provide insurance coverage for 95% of user assets.
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(Investment in Hong Kong licensed exchange OSL’s parent company, Foresight VC and BitgetX, is a retreat for advancement.)
HashKey has a maximum of $400 million insurance coverage
In November 16, last year, HashKey signed a cryptocurrency insurance agreement with OneInfinity, offering coverage ranging from $50 million to $400 million for various cybersecurity vulnerabilities, such as server downtime, data backup, and load management events.
OneInfinity was established by the OneDegree Group in 2022 and focuses on Web3-related businesses.
13 other entities are currently applying
According to the official website of the Securities and Futures Commission of Hong Kong, only OSL and HashKey have obtained virtual asset trading licenses, while the other 13 entities are still in the application process.
HashKey
OSL
SFC
Hong Kong licensed exchange
Further reading
Asia’s first? Hong Kong Securities and Futures Commission: Ready to accept virtual asset spot ETF products
Chainnews compilation | Cryptocurrency regulatory developments across Europe, Asia, and the Americas.