Hong Kong is reportedly mulling over plans to expand the regulatory oversight of over-the-counter (OTC) virtual asset trading services by involving the Securities and Futures Commission (SFC) alongside the Hong Kong Customs and Excise Department (C&ED), according to the South China Morning Post.
Sources familiar with the matter revealed that the SFC has been actively seeking industry opinions on a potential new licensing system for cryptocurrency OTC services. The envisioned system would entail collaborative supervision of relevant companies by both the SFC and C&ED.
Previously, the proposed OTC supervision and licensing system, as outlined in a February 2024 proposal, fell solely under the purview of C&ED. This potential move signals a shift towards a more comprehensive regulatory approach for the burgeoning crypto sector.
Additionally, it is reported that the SFC has also engaged in consultations with relevant companies in recent months concerning the introduction of a new license system for cryptocurrency custody services.
Both licensing systems are still in their early stages of development, and details could potentially change as discussions progress.
An SFC spokesperson, in a statement on September 12th, emphasized the regulator’s commitment to fostering a “sound, clear, and consistent regulatory environment” in Hong Kong. The SFC highlighted its ongoing collaboration with the government and other regulators to promote the sustainable and responsible growth of the virtual asset industry.
