Regulatory Alerts2024-04-16
Added · Updated
Risk management considerations related to the use of distributed ledger technology
The Hong Kong Monetary Authority issues non-binding guidance to Authorized Institutions on managing risks associated with adopting distributed ledger technology in traditional financial operations. The document outlines critical expectations across governance, application design, and ongoing maintenance, emphasizing robust controls for smart contracts, private key security, and legal compliance. It requires institutions to demonstrate adequate systems for cybersecurity, data privacy, and contingency planning to ensure the stability and resilience of DLT-based solutions.