TechFlow reported that in response to media speculation that the Hong Kong Securities and Futures Commission (SFC) may participate in formulating OTC regulations, Gary Tiu, Executive Director of OSL Group, a Hong Kong-listed digital asset company, stated that involving the SFC could bring a more professional and comprehensive OTC regulatory framework, creating a multi-agency supervision system together with Customs to effectively prevent illegal activities and risks. He also noted that OSL, as one of only two virtual asset trading platforms explicitly licensed by the Hong Kong SFC, adheres to strict KYC and AML standards, holds SOC 2 Type 2 certification, and undergoes regular audits to ensure the highest level of security for client assets.
Earlier reports indicated that sources revealed Hong Kong is considering allowing the SFC to supervise OTC virtual asset trading services. The SFC has already begun consulting industry players on a potential new licensing regime for cryptocurrency OTC services, which would be jointly regulated by the SFC and Customs. In contrast, under a proposal released in February 2024, OTC cryptocurrency outlets were to be regulated solely by Customs.
