Hong Kong SFC pushes to phase out OTP for crypto exchanges

Hong Kong's Securities and Futures Commission (SFC) has directed online brokerages and cryptocurrency trading platforms to discontinue the use of one-time password (OTP) authentication for logins and device registration, urging them to adopt new security frameworks. According to The Block, the move is designed to prevent account takeovers, financial fraud, and spoofing attacks. The SFC stated that companies must adopt authentication methods that prevent identity forgery, such as passkeys and device binding, in place of OTP for customer logins and device registrations.