Notice - Consultation - Digital Asset Business (Custody of Client Assets) Rules 2024 (2024-02-29)

Summary

This is a BMA consultation notice inviting stakeholder feedback on proposed Digital Asset Business (Custody of Client Assets) Rules 2024. The draft Rules aim to clarify existing custody-related provisions in the Digital Asset Business Act 2018 and the DAB Code of Practice, and to supplement cyber risk requirements under the Digital Asset Custody Code of Practice 2019. No rules are yet in force; this is a call for comments on a draft.

• Scope: The proposed Rules would apply to any Digital Asset Business (DAB) that holds client assets.
• Topics covered: Segregation of client assets, establishment and discharge of a DAB's fiduciary duty to clients, treatment of client assets in pooling events, applicability where functions or assets are delegated to a third-party intermediary, and accounting and reconciliation requirements.
• How to respond: Stakeholders can submit comments via the provided SurveyMonkey link or QR code.

Since this is a consultation notice rather than a final rule, it does not itself impose binding compliance obligations on licensees; it solicits input that may shape the eventual Rules.

Key obligations

• Stakeholders wishing to participate must submit comments to the Authority via the survey link or QR code no later than close of business on 30 April 2024.

Applies to

Digital Asset Business (DAB) holding client assets, digital asset custodial wallet providers

Deadlines

• 30 April 2024, close of business: Deadline for stakeholders to submit comments on the proposed Digital Asset Business (Custody of Client Assets) Rules 2024.