Hong Kong Seeks Input on OTC Crypto Trading Rules
Hong Kong Seeks Input on OTC Crypto Purchasing and selling Options
Hong Kong on Thursday announced a session on regulating over-the-counter (OTC) crypto trading.
The Monetary Companies and products and the Treasury Bureau session seeks to attach a conceptual framework for licensing digital asset OTC products and companies. Under the regime, operators would be mandated to manufacture licenses and adjust to anti-cash laundering and counter-terrorist financing tips.
It states that any individual trading digital sources in Hong Kong would want a license from the Commissioner of Prospects and Excise (CCE). On the different hand, Digital Asset Purchasing and selling Platforms (VATPs) are exempt, as they’re already regulated beneath the Securities and Futures Price (SFC).
Those which be pleased obtained a compliant alternate or stablecoin issuer license are exempted.
— Wu Blockchain (@WuBlockchain) February 8, 2024
FSTB Invitations Written Feedback on Session till April 12
Powers would perhaps be granted to the CCE to place into effect the regime and retain a watch on licensed VA OTC provider companies, beneath statutory requirements.
“The legislative proposals describe the largest aspect in the Authorities’s efforts to make a sturdy and clear regulatory environment for the sustainable trend of VA and Web3,” a authorities spokesperson said.
Those that protect a compliant alternate or stablecoin issuer license are exempt from this requirement.
Earlier this week, FSTB Secretary Christopher Hui warned of dangers associated with OTC venues. He cited their accessibility and historical past of involvement in fraud cases.
The Monetary Companies and products and the Treasury Bureau (FSTB) said this can even secure written feedback on the session up to April 12.
Deadline Looms for Hong Kong-Essentially based fully Crypto Exchanges
Hong Kong has been positioning itself as a crypto hub to attract original capital and talent. It also seems to must reclaim its position as a world financial hub, taking a glimpse to tap into rising commerce curiosity and investment.
The authorities is concerned to contain the crypto ecosystem. That is obvious thru implementation of novel regulations to oversee crypto exchanges and allow trading for retail merchants.
Earlier this week, Hong Kong’s SFC issued a warning to crypto merchants. They urged the utilize of easiest licensed trading platforms and entreated verifying the dwelling of the exchanges they’ve signed up for.
The announcement comes as Hong Kong-essentially based digital asset trading platforms must observe for licenses by Feb. 29 or cease operations by the conclude of May maybe well unbiased.
Hong Kong is also situation to appear at the US in approving position Bitcoin ETFs. In December, both the SFC and the Hong Kong Monetary Authority announced they would secure applications for digital asset position ETFs. Along with they supplied requirements of conduct for intermediaries taking a glimpse to distribute these funds.
Source : cryptonews.com
