FCA’s Crypto Custody Principles Mandate Enhanced Security for Companies

New principles proposed by the Financial Conduct Authority (FCA) for crypto asset custody significantly raise the security bar for firms holding such assets. These principles will require companies to implement stricter security measures, including robust safeguards against fraud and hacking. This includes protecting user personal data, ensuring the security of technical infrastructure, and conducting regular audits. The aim is to bolster investor confidence in the crypto market and protect their funds from potential losses due to security breaches. This is a positive step towards improving the safety and regulation of the rapidly growing crypto asset industry. Companies will be meticulously assessed on their adherence to these standards to avoid legal infractions and penalties. The principles also contribute to creating a safer and more trustworthy environment for investors in this evolving financial sector.