Insider: Hong Kong is considering allowing the Securities and Futures Commission to participate in the supervision of over-the-counter virtual asset trading services

Hong Kong is considering involving the Securities and Futures Commission (SFC) in regulating over-the-counter (OTC) virtual asset trading services. People familiar with the matter revealed that the SFC has consulted the industry on a potential new licensing system for cryptocurrency OTC services. Under the system, the SFC will work with the Hong Kong Customs and Excise Department (C&ED) to regulate the corresponding companies. In the previous proposal announced in February 2024, the planned OTC trading supervision and licensing system was previously the responsibility of the C&ED alone. The source also said that the SFC has also consulted relevant companies in recent months on the introduction of a new licensing system for cryptocurrency custody services. At present, discussions on these two licenses are still in the early stages and may be subject to change. In order to promote the sustainable and responsible development of Hong Kong's virtual asset industry, the SFC is working closely with the government and other regulators to establish a sound, clear and consistent regulatory environment in Hong Kong. (South China Morning Post)