Xu Zhengyu: The China Securities Regulatory Commission is expected to take the lead in supervising virtual asset transactions and custody services

According to Ming Pao, Foresight News reports that the Hong Kong Financial Secretary's Office and the Securities and Futures Commission (SFC) are conducting a two-month public consultation on licensing and regulatory systems for virtual asset trading and custody service providers. The new system will have the SFC as the primary regulator, with the Hong Kong Monetary Authority responsible for front-line supervision of banking-related aspects. Financial Secretary Christopher Hui stated that the aim is to centralize regulatory management of related transactions and prevent "regulatory arbitrage". The new system requires all virtual asset trading service providers to obtain a license or register, including existing intermediaries, virtual asset trading platforms, and over-the-counter operators already licensed or registered with the SFC. The two consultation documents are expected to publish their conclusions in the first half of next year.