Hong Kong's Treasury Secretary: Will soon submit the legislative bill for licensing regime of over-the-counter virtual asset trading
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Hong Kong's Treasury Secretary: Will soon submit the legislative bill for licensing regime of over-the-counter virtual asset trading
According to Zhitong Caijing, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, in a written reply to lawmakers, stated that the Securities and Futures Commission (SFC) enhanced information disclosure in September last year by releasing various details regarding virtual asset trading platforms, including a "List of Suspicious Virtual Asset Trading Platforms," to provide clear, transparent, and timely information to the public. As of February 14 this year, a total of 14 platforms have been listed on this register. The number of crimes involving virtual assets over the past three years (2021 to 2023) stood at 1,397, 2,336, and 3,415 cases respectively, with associated amounts totaling HK$824 million, HK$1.704 billion, and HK$4.398 billion. Regarding arrests and prosecutions, police currently only compile related figures on a case-by-case basis according to specific circumstances. For example, in the JPEX case, as of yesterday (the 20th), a total of 70 individuals have been arrested, though no one has been charged yet. In addition, as of February 2 this year, the SFC and the police have exchanged intelligence on more than 100 cases involving virtual asset trading platforms or virtual asset-related activities. The SFC and the police will decide whether to launch dedicated investigations into complaints about individual platforms or activities based on a range of factors, including their connection to Hong Kong, whether they involve breaches of relevant laws, and the number of people involved and the amount of money at stake. To further improve the regulatory framework, the Financial Services and the Treasury Bureau (FSTB) launched a public consultation on February 8 this year on legislative proposals to establish a licensing regime for over-the-counter virtual asset service providers, with the consultation period running until April 12. Additionally, the FSTB and the Hong Kong Monetary Authority (HKMA) jointly commenced a public consultation in December last year on the regulation of stablecoin issuers, with the consultation period ending on February 29 this year. The next steps will depend on the consultation outcomes.
Navigating Web3 tides with focused insightsTechFlow reports, according to Zhitong Caijing, that Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, in a written reply to lawmakers, stated that the Securities and Futures Commission (SFC) enhanced its information disclosure in September last year by releasing various details regarding virtual asset trading platforms, including a "List of Suspicious Virtual Asset Trading Platforms," to provide the public with clear, transparent, and timely information. As of February 14 this year, a total of 14 platforms have been listed on this register.
Over the past three years (2021 to 2023), the total number of crimes involving virtual assets amounted to 1,397, 2,336, and 3,415 cases respectively, with corresponding amounts involved of HK$824 million, HK$1.704 billion, and HK$4.398 billion. Regarding arrests and prosecutions, police currently only compile related figures on a case-by-case basis depending on specific circumstances. For example, in the JPEX case, as of yesterday (the 20th), a total of 70 individuals have been arrested, though no one has been charged yet.
In addition, as of February 2 this year, the SFC and the Police Force have exchanged intelligence on more than 100 cases concerning virtual asset trading platforms or virtual asset-related activities. The SFC and the Police jointly determine whether to launch dedicated investigations into complaints about specific platforms or activities based on a range of factors, including whether there is a connection with Hong Kong, whether relevant laws are potentially breached, and the number of people affected and amount involved.
To further improve the regulatory framework, the Financial Services and the Treasury Bureau (FSTB) launched a public consultation on February 8 this year regarding legislative proposals to establish a licensing regime for over-the-counter virtual asset service providers, with the consultation period running until April 12. Additionally, the FSTB and the Hong Kong Monetary Authority (HKMA) jointly initiated a public consultation in December last year on the regulation of stablecoin issuers, with the consultation period ending on February 29 this year. Depending on the outcomes of these consultations and the progress of preparatory work, the government will submit a bill to the Legislative Council as soon as possible to implement the aforementioned licensing regime.
