Hong Kong is planning to have the Securities and Futures Commission work with Hong Kong Customs to jointly regulate virtual asset OTC trading

ChainCatcher news, Hong Kong is currently exploring whether to involve the Securities and Futures Commission (SFC) and the Hong Kong Customs and Excise Department (C&ED) in regulating over-the-counter (OTC) services for virtual assets.

According to informed sources, the Hong Kong Securities and Futures Commission has sought industry opinions on possibly implementing a new licensing system for cryptocurrency OTC services, which would allow the securities regulator to collaborate with C&ED to oversee these companies, as the discussions are private. According to a proposal made public in February, the planned OTC regulations and licenses were previously the sole domain of C&ED. OTC services facilitate direct and private large-scale cryptocurrency transactions between parties.

Informed sources also indicated that in recent months, the Hong Kong SFC has consulted companies about introducing a new licensing system for cryptocurrency custody services. They stated that discussions regarding these two licenses are still in the early stages and may change.