PANews reported on February 20 that the Hong Kong Securities and Futures Commission disclosed in its virtual asset roadmap that it will explore providing pledge services in a regulated ecosystem, supplemented by technology and custody safeguards, including formulating requirements for managing client asset custody, mitigating the risk of haircuts and liquidity brought about by pledges, and ensuring that the operational process of pledges is transparent, so as to allow investors to participate in the core functions of virtual assets while benefiting from traditional financial market returns. The Hong Kong Securities and Futures Commission will formulate a custodian licensing system to recognize the key role played by custodians in protecting client assets. Legislative preparations will be led by the Hong Kong SAR government and involve regulators, and are scheduled to be completed by the end of 2025.