Hong Kong's SFC is considering new licensing rules for OTC cryptocurrency trading, aiming to enhance oversight and strengthen its position as a global crypto hub.

Hong Kong’s Securities and Futures Commission (SFC) is currently exploring the introduction of a new licensing framework for over-the-counter (OTC) cryptocurrency services, seeking feedback from industry participants. This potential regulatory move comes as the city aims to tighten its oversight of digital asset trading and bolster its reputation as a global cryptocurrency hub.

The SFC, which regulates securities and futures markets, is collaborating with the Customs and Excise Department (C&ED) to ensure proper supervision of companies offering OTC crypto trading services. This development follows an earlier proposal where the C&ED was initially set to oversee the OTC crypto regulations.

OTC trading services allow users to privately buy and sell cryptocurrencies without using public exchanges. The growing interest in this market has prompted regulators to consider additional safeguards to protect investors and ensure compliance within the industry.

The SFC has also begun gathering input from companies currently providing OTC crypto trading services on implementing new licensing rules for cryptocurrency custodial services. These discussions are in the preliminary stages, and no final decisions have been made yet.

Additionally, the SFC has released an “alert list” identifying suspicious or unlicensed virtual asset trading platforms that may be targeting Hong Kong investors. The list, which has been continuously updated since January 2020, underscores the city’s commitment to cracking down on unlicensed entities operating in the digital asset space.

As of June 1, operating an unlicensed virtual asset trading platform in Hong Kong is considered a criminal offense. Currently, only two platforms—Hash Blockchain and OSL Digital Securities—have received full licenses to operate in the region.

Hong Kong’s push to regulate and license OTC and other crypto trading services is part of a broader effort to attract international crypto businesses while maintaining strong investor protection. As more companies seek licensing approval, Hong Kong’s regulatory landscape continues to evolve, positioning the city as a leading player in the global crypto industry.

👍 ❤️ 😂 😮 😢 😡 🤔 👏 🔥 🥳 😎 👎 🎉 🤯 🚀 Ξ Ł Ð 🌕
🚀 1

Leave a Reply

Your email address will not be published. Required fields are marked *



Exchange Rates
bitcoinBitcoin
$ 59,643.982.29%
ethereumEthereum
$ 2,363.172.21%
the-open-networkToncoin
$ 5.061.47%

Subscribe to our Telegram channel!

Keep up to date with all news and updates by subscribing to our Telegram channel.

Subscribe
Finance and Technology
© 2024 FinandCrypto.com. All rights reserved.