Custody Requirements

Definition ∞ Custody requirements are the rules and standards governing the secure storage and management of digital assets. These stipulations dictate how custodians, such as exchanges or specialized service providers, must safeguard clients’ cryptocurrencies from theft, loss, or unauthorized access. They often include provisions for cold storage, multisignature wallets, regular audits, robust cybersecurity protocols, and insurance coverage. Adherence to these requirements is paramount for maintaining the integrity and trustworthiness of digital asset platforms, especially for institutional investors.
Context ∞ Regulatory bodies globally are increasingly establishing stringent custody requirements for digital assets, impacting how financial institutions engage with cryptocurrencies. News reports frequently address new compliance frameworks, technological advancements in secure storage solutions, and the ongoing debate concerning self-custody versus third-party custody for various asset classes. The evolution of these standards remains a central point of interest for market stability and investor protection.

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→Market Integrity

→ASIC Oversight

→Custody Requirements

Australia Mandates Financial Services License for Digital Asset Platforms and Custodians

Australia’s new licensing framework mandates AFSL compliance for all major digital asset platforms, fundamentally restructuring operational risk and governance.

A faceted blue crystalline structure, resembling an immutable ledger shard, dominates the frame, encasing a glowing full moon. This celestial body functions as a decentralized oracle, providing critical off-chain data feeds to the protocol architecture. Patches of white snow suggest cold storage for digital assets or frozen liquidity. White, bare branches extend, symbolizing potential network forks or layer-2 scaling solutions within the decentralized finance ecosystem. The intricate structure reflects cryptographic primitives securing on-chain governance.

→Payment Services Act

→Reserve Management

→Customer Asset Segregation

MAS Mandates Segregated Customer Assets and High Liquidity for DPT Firms

Singapore’s new DPT rules mandate systemic operational changes, requiring licensed firms to implement full asset segregation and high-reserve liquidity controls.

A highly detailed, metallic blue digital infrastructure, resembling a microscopic view of a complex system. A central, intricately structured element, suggestive of a sophisticated smart contract or DeFi protocol, dominates the foreground. This core component exhibits fluid, interconnected pathways, embodying on-chain data flow and cryptographic primitives. Surrounding it is a modular landscape of uniform, block-like structures, representing validator nodes within a distributed ledger technology DLT network. The arrangement signifies a robust blockchain architecture, highlighting network topology and potential scalability solutions for Web3 applications. The shallow depth of field emphasizes intricate hashing algorithms.

→Custody Requirements

→Web3 Infrastructure

→Risk Mitigation

UAE Central Bank Mandates Licensing for All DeFi and Web3 Financial Services

The UAE's new federal decree eliminates the "code is not a shield" defense, mandating CBUAE licensing for all on-chain financial services by September 2026.