Hong Kong considers new licensing regime for OTC crypto trading

Hong Kong’s Securities and Futures Commission (SFC) has sought opinions from industry participants on whether to introduce a new licensing regime for cryptocurrency over-the-counter (OTC) services.

The new regime would see SFC, the securities and futures markets regulator, working with the Customs and Excise Department (C&ED) to supervise the companies offering crypto OTC trading services.

According to a South China Morning Post report, the planned regulations and licensing for OTC services were initially to be handled exclusively by the C&ED under a proposal made public in February.

OTC trading services allow users to buy and sell cryptocurrencies privately. Check out Cointelegraph’s guide to learn more about how crypto OTC trading works.

The SFC has recently sought input from companies that currently provide OTC trading services on implementing a new licensing regime for cryptocurrency custodian services. Discussions on both these licenses are still in the early stages, the SCMP report said, quoting sources it did not identify.

SFC puts suspicious crypto platforms on ‘alert list’

The SFC, meanwhile, has published an “alert list” that names “suspicious virtual asset trading platforms,” or unlicensed entities operating in Hong Kong.

SFC said these entities could be targeting Hong Kong investors. The alert list names suspicious websites or unlicensed entities since Jan. 2020.

Hong Kong tightening oversight as it eyes global crypto hub status

Hong Kong has been striving to establish itself as a global cryptocurrency hub, attracting investors and related businesses to the special administrative region’s digital assets industry.

As of June 1, operating an unlicensed virtual asset trading platform (VATP) in Hong Kong became a criminal offense.

At present, there are only two fully licensed virtual asset trading platforms in Hong Kong: Hash Blockchain and OSL Digital Securities.

OSL did not immediately reply to Cointelegraph’s request for comments.

Crypto exchanges that have yet to receive full operational licenses in Hong Kong include Crypto.com, Bullish, HKbitEX, PantherTrade, Accumulus, DFX Labs, Bixin.com, EX.IO, YAX, WhaleFin and Matrixport HK.

Source: https://cointelegraph.com/news/hong-kong-sfc-crypto-otc-licensing-regime