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Hong Kong Securities and Futures Commission to Take Main Regulatory Responsibility for Virtual Asset OTC Trading Custody Services Instead of Customs
Summary: According to reports, last year the Hong Kong Treasury Department proposed that the Commissioner of Customs issue licenses for over-the-counter (OTC) virtual asset trading and regulate OTC services. Hong Kong Treasury Secretary Christopher Hui explained that after proposing customs regulation of OTC trading, some Legislative Council members expressed differing opinions, including concerns about regulatory arbitrage. ...
According to reports, last year the Hong Kong Treasury Department proposed that the Commissioner of Customs issue licenses for over-the-counter (OTC) virtual asset trading and regulate OTC services. Hong Kong Treasury Secretary Christopher Hui explained that after proposing customs regulation of OTC trading, some Legislative Council members expressed differing opinions, including concerns about regulatory arbitrage. It was later discovered that the market operation model was more complex than initially thought, with some OTC institutions not only providing OTC services but also custody services. Therefore, they hope to centralize the regulation of related transactions, with the Hong Kong Securities and Futures Commission now identified as the main regulator. If banking services are involved in the future, the Hong Kong Monetary Authority will act as the frontline regulator.
Christopher Hui also added that regardless of whether virtual asset service providers will eventually be treated as licensed arrangements, they will be given sufficient notice to ensure there are enough regulatory and other resources to handle license applications.
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Link: Hong Kong Securities and Futures Commission to Take Main Regulatory Responsibility for Virtual Asset OTC Trading Custody Services Instead of Customs [Copy]
