Hong Kong SFC Mandates Stronger Security Measures for Crypto Platforms

Hong Kong’s Securities and Futures Commission (SFC) has issued a directive requiring licensed crypto platforms and online brokers to discontinue SMS-based authentication within the next year. The move aims to enhance cybersecurity and protect against phishing attacks. The SFC’s updated standards mandate the adoption of more secure login methods such as passkeys, device binding, and hardware security keys. This decision follows the prevalence of phishing scams that resulted in $306 million in cryptocurrency losses in the first quarter of 2026. In response to the growing threat landscape, the SFC emphasized the importance of implementing phishing-resistant authentication systems to safeguard customer…