Hong Kong is considering involving the Securities and Futures Commission (SFC) in regulating over-the-counter (OTC) virtual asset trading services to address regulatory challenges in the industry. The SFC is exploring the possibility of implementing a new licensing regime for cryptocurrency OTC services in collaboration with the Customs and Excise Department (C&ED).
The proposal to regulate OTC services, previously under the jurisdiction of the C&ED, aims to oversee large-volume cryptocurrency transactions between parties. The SFC has also consulted companies on potentially introducing a new licensing regime for cryptocurrency custodian services.
Efforts to develop a clear regulatory framework for the virtual assets industry in Hong Kong involve close coordination between the SFC, the government, and other regulators. The discussions on the new licensing regimes are ongoing and subject to change.