Hong Kong’s securities regulator said cryptocurrency-trading companies would need to leave the city if they don’t plan on getting licences and released proposed new rules seeking to better protect investors in the wake of the collapse of FTX.

The Securities and Futures Commission would require crypto exchanges to ringfence customer deposits, put controls in place to keep crypto keys secure and make sure that no more than 2% of customer funds are stored in a so-called “hot wallet”, which is a less secure way to hold crypto assets, according to the proposed rules.