Hong Kong Launches Public Consultation on Licensing Regime for OTC Virtual Asset Trading Services
Hong Kong authorities are seeking public input on proposed legislative changes that would require providers of over-the-counter (OTC) virtual asset (VA) trading services to obtain a license. The move comes in response to fraud cases involving VA OTC operators and aims to mitigate money laundering and financing risks.
The consultation suggests that individuals conducting spot trading services for any virtual assets in Hong Kong must obtain a license from the Commissioner of Customs and Excise (CCE). Furthermore, the government proposes extending CCE’s oversight authority to cover all VA over-the-counter services, ensuring compliance with anti-money laundering and anti-terrorist financing measures. The consultation period will run for two months until April 12, 2024.
Hong Kong Securities and Futures Commission Updates Policy on Virtual Currency Sales
In October last year, the Hong Kong Securities and Futures Commission announced revisions to its policy on virtual currency sales. These updates were prompted by market events and industry requests for clarity.
The new standards classify virtual assets as complex products, subjecting them to the same regulatory requirements as similar financial products. The commission provides examples such as cryptocurrency exchange-traded funds (ETFs) and products issued outside of Hong Kong.
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