Regulatory Alerts2024-04-16
Added · Updated
Risk management considerations related to the use of distributed ledger technology
The Hong Kong Monetary Authority issued this circular to outline key risk management considerations for authorized institutions proposing distributed ledger technology solutions. The regulator emphasizes a risk-based approach, requiring banks to demonstrate adequate systems and controls to manage additional risks associated with DLT adoption, particularly in tokenized assets. These non-binding supervisory guidelines aim to support innovation while ensuring robust risk management practices evolve alongside market developments.