Exclusive: Hong Kong’s Crypto Landscape Could Transform with SFC’s Proposed Involvement in OTC Regulations

Exclusive Report | SFC's involvement in over-the-counter regulations might bring about changes in the recent Hong Kong's cryptocurrency plan

A prior suggestion placed over-the-counter cryptocurrency businesses under the purview of the excise department, but certain individuals expressed dissatisfaction over the complex rules concerning digital assets, according to sources.

The Securities and Futures Commission (SFC) is said to be consulting with industry stakeholders on the possibility of introducing a new license system for over-the-counter cryptocurrency services. This would involve collaborating with the Customs and Excise Department (C&ED) to supervise such firms, as per sources who wished to remain anonymous due to the confidential nature of these talks.

The Securities and Futures Commission (SFC) has been in talks with various firms recently regarding the initiation of a new licensing structure for cryptocurrency custodial services, according to sources. The conversations around both licenses are still in their initial phase and may undergo changes, the sources added.

In order to encourage the steady and conscientious growth of the virtual assets sector in Hong Kong, the SFC is in active collaboration with the government and other regulators. Their goal is to establish a strong, transparent, and uniform regulatory framework in Hong Kong, stated a representative from the SFC on Wednesday.