InVault’s cryptocurrency custodian service debuts in Hong Kong as new regulations kick i…

Hong Kong’s new regulations for cryptocurrencies have security at their heart, specifically the safeguarding of digital assets from theft or loss.

Under a strict new licensing regime, trading platforms and fund managers are required to ensure their clients’ virtual assets are well protected. One method is to take on the services of a third-party cryptocurrency custodian.

InVault, a Shanghai-based start-up, claims to be the first such digital custodian to take advantage of the new licensing requirements to launch its services in Hong Kong.

The company, which has about 1 million ethereum under its protection in mainland China, has obtained a new trust licence from the Hong Kong regulator and will start offering its fully automated service in December.

InVault protects assets by keeping the client’s “private key” – a complex code used to access the digital wallet or carry out a transaction – in a physical vault. Private keys are notoriously difficult to remember and…