Chan Ho-lim: The Hong Kong government plans to propose a proposed licensing system for virtual asset custody for consultation next year

Odaily Planet Daily reported that the Under Secretary for Financial Services and the Treasury of the Hong Kong government, Chan Ho-lam, stated that the Hong Kong government intends to improve the regulation of virtual asset transactions. The government plans to complete the second round of public consultation on the regulation of over-the-counter (OTC) virtual asset transactions next year, and will also propose a licensing regime for virtual asset custody service providers next year to ensure that the safekeeping of digital assets meets international standards. He emphasized that the government has a clear understanding of the concept of virtual assets, believing that "only by providing a transparent, certain and predictable regulatory environment can financial innovation be effectively encouraged." Before the end of this year, the government will submit a draft bill to the Legislative Council to establish a licensing regime for issuers of fiat-linked stablecoins, in order to build a safe framework for this emerging market. He also described the virtual asset trading platform licensing regime introduced in June last year as an "important milestone." He pointed out that many financial institutions have chosen to set up their regional headquarters or largest regional operations in Hong Kong, which means that companies in Hong Kong can conveniently access a large number of potential clients, investors and business partners, making Hong Kong an ideal place for their startups and expansion.