Hong Kong is considering allowing the Securities and Futures Commission to participate in regulating over-the-counter virtual asset trading services

Odaily Odaily News Hong Kong is considering allowing the Securities and Futures Commission (SFC) to participate in the regulation of over-the-counter (OTC) virtual asset trading services. People familiar with the matter revealed that the SFC has consulted the industry on a potential new licensing system for cryptocurrency OTC services. Under the system, the SFC will work with the Hong Kong Customs and Excise Department (C&ED) to supervise the corresponding companies. In the proposal previously announced in February 2024, the planned OTC trading supervision and licensing system was previously only the responsibility of C&ED. Sources also said that the SFC has also consulted relevant companies in recent months on the introduction of a new licensing system for cryptocurrency custody services. At present, discussions on these two licenses are still in the early stages and may change. A spokesperson for the SFC said on September 12 that in order to promote the sustainable and responsible development of Hong Kong's virtual asset industry, the SFC is working closely with the government and other regulators to establish a sound, clear and consistent regulatory environment in Hong Kong. (SCMP)