Hong Kong Set To Release Consultation on Regulatory Framework for OTC Crypto Platforms
Hong Kong Role To Unencumber Consultation on Regulatory Framework for OTC Crypto Platforms
Hong Kong will put up a session on a proposed regulatory framework for over-the-counter crypto buying and selling platforms “very rapidly,” according to a February 2 weblog put up.
Secretary for Monetary Services and products and the Treasury Christopher Hui warned the public of the dangers of over-the-counter venues, given their accessibility and involvement in fraud conditions.
As the transitional period for the #VirtualAsset Carrier Services licensing machine enters its final stage, we are step by step improving measures on virtual asset legislation to facilitate market construction #ChristopherHui https://t.co/SZCYooCwWK
— Hong Kong SAR Authorities News (@newsgovhk) February 2, 2024
Hong Kong’s Majority Crypto Fraud Conditions Precipitated by OTC Platforms
“OTC venues bear performed a affirm operate in one of the major fraud conditions titillating some unlicensed VA buying and selling platforms final year, having misled investors to channel funds to these unlicensed platforms,” Hui wrote. “Therefore, we reflect that it is extreme to bring OTC venues below legislation, and we are going to give you the probability to open a session very rapidly on the proposed regulatory framework.”
In June 2023, Hong Kong formally launched its crypto licensing framework for virtual asset buying and selling platforms, allowing licensed exchanges to produce retail buying and selling products and companies. Two platforms, HashKey and OSL, bear got licenses below this regime to this point.
The executive offered a transition period for virtual asset carrier providers already working in Hong Kong sooner than the licensing machine took impact, mandating them to put up license applications by February 29.
The Securities and Futures Commission (SFC) will assess whether or no longer applicants fulfill the regulatory requirements and had gigantic operations in Hong Kong sooner than the initiation of the licensing machine.
This overview will select whether or no longer present carrier providers may maybe maybe well be conception to be as licensed from June 1 this year till a final decision is reached on their license applications.
Hui cautioned that because the closing date nears, the SFC is gearing up for enforcement actions and may maybe maybe well intensify publicity initiatives.
Stablecoin Issuance Consultation Nears Conclusion
In December 2023, the Hong Kong Monetary Authority (HKMA), in collaboration with the Monetary Services and products and the Treasury Bureau, said in a joint session paper that a stablecoin issuer would favor to develop a license from the authorities “if it factors a stablecoin that references the worth of one or more fiat currencies in Hong Kong.”
The two-month session period is scheduled to retain out at the end of this month.
Hui added that the HKMA intends to set up a sandbox for the exploration of stablecoin issuance, that would comprise collaboration with key trade gamers within the space.
Source : cryptonews.com
