TechFlow reports, according to Oriental Daily News, that Hong Kong's Financial Services and the Treasury Bureau Deputy Secretary for Financial Services and the Treasury, Clement Chan, said on October 27 that the Hong Kong government plans to complete the second round of public consultation on over-the-counter (OTC) virtual asset trading regulation in 2025. Simultaneously, it will launch a consultation proposal for a licensing regime for virtual asset custodian service providers to ensure digital asset custody meets international standards.
Chan emphasized that Hong Kong has a clear regulatory approach toward virtual assets and will submit a bill to the Legislative Council by the end of 2024 establishing a licensing regime for fiat-backed stablecoin issuers. He stated that a transparent, certain, and predictable regulatory environment is key to driving financial innovation.
Since introducing the virtual asset trading platform licensing regime in June 2023, Hong Kong has attracted numerous financial institutions to set up regional headquarters, offering Web3 companies convenient access to potential customers, investors, and business partners.
