New FCA Crypto Custody Guidelines Push Corporations to Enhance Security

The UK’s Financial Conduct Authority (FCA) recently released updated guidelines on crypto asset custody, setting a higher bar for security among firms handling cryptocurrencies. These guidelines emphasize the importance of robust security measures to protect client assets from breaches and theft. These measures include, but are not limited to, employing advanced encryption technologies, conducting regular security audits, and training employees on cybersecurity best practices. The guidelines are expected to drive many firms to upgrade their security systems to meet the new requirements, potentially leading to increased investment in cryptocurrency cybersecurity. This move is part of the FCA’s broader efforts to regulate the cryptocurrency market and provide a safer environment for investors. With the rising popularity of cryptocurrencies, adhering to stringent security standards has become a necessity for firms seeking to maintain client trust and mitigate potential risks.