Hong Kong Launches Public Consultation on Licensing System for Virtual Asset OTC Service Providers

According to Foresight News, Hong Kong has launched a public consultation on legislative proposals for establishing a licensing system for virtual asset over-the-counter (OTC) service providers. The consultation period will last for two months, ending on April 12th. The key points of the legislative proposals include: 1) Requiring anyone providing virtual asset and fiat currency trading services in Hong Kong in a business capacity to apply for a license from the Commissioner of Customs and Excise; 2) Covering all virtual asset OTC services, regardless of whether the services are provided through physical stores and/or other platforms; 3) Granting the Commissioner of Customs and Excise the power to supervise licensees' compliance with anti-money laundering and counter-terrorist financing requirements, as well as enforcing the new statutory and regulatory requirements; 4) Providing transitional arrangements to ensure the effective implementation of the regulatory system.