A Hong Kong Official Plans to Introduce Licensing Frameworks for Stablecoin and OTC Crypto Trading
A finance official in Hong Kong has announced that the government will work towards submitting licensing bills for stablecoin and over-the-counter (OTC) crypto trading frameworks. Christopher Hui, Secretary for Financial Services and the Treasury, stated that the Financial Services and the Treasury Bureau (FSTB) has launched a public consultation on legislative proposals to introduce a licensing regime for providers of OTC crypto trading services. The consultation is set to end on April 12. Additionally, the FSTB and the Hong Kong Monetary Authority have jointly launched a consultation on regulating stablecoin issuers. All fiat-referenced stablecoin issuers may be required to obtain a license from the HKMA.
Growing Concerns about Crypto-Related Crime in Hong Kong
Hui also highlighted an increasing number of crypto-related crime cases in recent years. In 2021, Hong Kong saw 1,397 cases, which rose to 2,336 cases in 2022, and further increased to 3,415 cases in 2023. The total amount of money involved in these cases reached nearly HK$4.4 billion ($562.6 million) in 2023, compared to HK$824 million in 2021. While Hong Kong aims to become a crypto hub, regulators are cracking down on bad actors. Last year, the authorities busted the JPEX crypto exchange and have arrested 70 people associated with the platform as of February 20.
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