A local news outlet, South China Morning Post, reported that the Fusang Investment Office is up with a scheme to introduce a crypto-custody service in Hong Kong, this Sunday, July 22. The Company, which is primarily based in Asia, provides consulting services for family office management and investments needs.
The firm’s CEO, Henry Chong, informs that the Fusang Vault (the custody service), will maintain the digital assets of all the clients and would also furnish them with periodic audits. Chong, also mentioned that the company has envisaged the launch of the crypto-custody service at the end of the FY-2018.
Citing Henry Chong,
“Digital assets are akin to bearer bonds, whereby whoever that is holding the security is presumed to be the owner and there is no registration of ownership information of the security. Hence, the way we keep digital asset [sic] secured is of paramount importance.”
The CEO highlights the analogy between digital assets and financial bonds, putting forward the growing need for the introduction of a platform which would hold the clients’ crypto assets, just like the demand for custodian bank services in conventional finance. Henry assigns the ‘security’ of the digital assets as that of ‘paramount importance,’ owing to the lack of registration of ownership.
According to the company’s website, they operate under the regulation of the Monetary Authority of Singapore and are licensed by the Securities and Futures Commission of Hong Kong.
Furthermore, the company’s CEO mentions that they are currently in association with some insurance companies who aid them in ensuring the safety of their clients’ crypto assets. He, however, does not bring to the table any kind of hints relating to the features of the awaited launch.
Recently, Coinbase, which is one of the world’s largest cryptocurrency exchanges, had announced the launch of a crypto-custodian solution. The service essentially focused on the institutional clients. The Coinbase Custody Service functions under an independent member of the U.S. Financial Industry Regulatory Authority (FINRA) which conforms to the rules and laws of the U.S. Security and Exchange Commission (SEC).