Summary
The Hong Kong government plans to release a consultation on a proposed regulatory framework for over-the-counter (OTC) crypto trading platforms due to mounting risks. OTC venues have been involved in fraud cases and have misled investors in the past. Hong Kong implemented a crypto licensing regime in June 2023, and licensed exchanges are allowed to offer retail trading services. The Securities and Futures Commission is preparing for enforcement work as the deadline for license applications approaches. Additionally, the Hong Kong Monetary Authority plans to introduce a sandbox to explore stablecoin issuance with industry players.
Key Points
1. Hong Kong’s financial official plans to publish a consultation on a regulatory framework for over-the-counter (OTC) crypto trading platforms due to increasing risks and involvement in fraud cases.
2. The Securities and Futures Commission of Hong Kong is preparing for enforcement work as the deadline approaches for existing platforms to submit license applications under the crypto licensing regime that started in June 2023.
3. The Hong Kong Monetary Authority is currently conducting a consultation on stablecoin issuance, requiring stablecoin issuers to obtain a license if their stablecoin references the value of one or more fiat currencies in Hong Kong. The HKMA also plans to introduce a sandbox to explore stablecoin issuance with industry players.