Chan Ho-lim: The Hong Kong government plans to propose a proposed licensing system for virtual asset custody for consultation next year

Hong Kong's Deputy Secretary for Financial Services and the Treasury, Chan Ho-lim, said that the Hong Kong government intends to improve the regulation of virtual asset transactions and plans to complete the second round of public consultation on virtual asset over-the-counter (OTC) regulations next year. It will also propose a proposed licensing system for virtual asset custody service providers for consultation next year to ensure that the safe custody of digital assets meets international standards. He emphasized that the concept of virtual assets is clear, and believes that "only by providing a transparent, certain and predictable regulatory environment can financial innovation be effectively encouraged." Before the end of this year, a draft bill will be submitted to the Legislative Council to establish a licensing system for issuers of fiat stablecoins to build a security framework for this emerging market. At the same time, he described the licensing system for virtual asset trading platforms introduced in June last year as an "important milestone." He pointed out that many financial institutions choose to set up regional headquarters or the largest regional business in Hong Kong, which means that third-generation Internet (Web 3) companies in Hong Kong can easily access a large number of potential customers, investors and business partners, making Hong Kong an ideal place for their entrepreneurship and expansion. (East Net)