TechFlow news — On September 12, according to the South China Morning Post, Hong Kong is considering involving the Securities and Futures Commission (SFC) in regulating over-the-counter (OTC) virtual asset trading services. Sources revealed that the SFC has recently sought industry feedback on a potential new licensing regime for crypto OTC service providers, which would be jointly supervised by the SFC and Customs. Under a proposal unveiled in February 2024, OTC cryptocurrency outlets were to be regulated solely by Customs. However, complaints about confusing virtual asset regulations have prompted potential changes to the regulatory framework.
Sources also noted that in recent months, the SFC has consulted firms on introducing a new licensing regime for cryptocurrency custodial services. Discussions regarding both licenses remain at an early stage and could still change. On September 12, an SFC spokesperson stated that, to promote sustainable and responsible development of Hong Kong’s virtual asset industry, the SFC is working closely with the government and other regulators to establish a robust, clear, and consistent regulatory environment in Hong Kong.
