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.&nbsp;
The new regime would see SFC, the securities and futures markets regulator, working with the Customs and Excise Department (C&amp;ED) to supervise the companies offering crypto OTC trading services.
According to a South China Morning Post <a data-ct-non-breakable="null" href="https://www.scmp.com/tech/blockchain/article/3278116/new-hong-kong-crypto-scheme-could-see-changes-sfc-involvement-otc-rules?module=perpetual_scroll_0&amp;pgtype=article" rel="null" target="null" text="null" title="null">report</a>, the planned regulations and licensing for OTC services were initially to be handled exclusively by the C&amp;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 <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/crypto-otc-trading" rel="null" target="null" text="null" title="null">how crypto OTC trading works</a>.
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.
<h2 id="sfc-puts-suspicious-crypto-platforms-on-alert-list">SFC puts suspicious crypto platforms on ‘alert list’</h2>
The SFC, meanwhile, has published an “alert list” that names “suspicious virtual asset trading platforms,” or unlicensed entities operating in Hong Kong.&nbsp;
SFC <a data-ct-non-breakable="null" href="https://www.sfc.hk/en/alert-list#full-list" rel="null" target="null" text="null" title="null">said</a> these entities could be targeting Hong Kong investors. The alert list names suspicious websites or unlicensed entities since Jan. 2020.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-crypto-license-past-deadline" rel="null" target="null" text="null" title="null">Hong Kong accepts crypto license application past deadline</a>
<figure>
 <img alt="Hong Kong considers new licensing regime for OTC crypto trading" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191ea96-63d1-7744-b89a-708f3cd5456a">
 <figcaption style="text-align: center;">
 Names of unlicensed or suspicious entities on Hong Kong SFC’s alert list. Source: <a data-ct-non-breakable="null" href="https://www.sfc.hk/en/alert-list#full-list" rel="null" target="null" text="null" title="null">SFC</a>
 </figcaption>
</figure>
<h2 id="hong-kong-tightening-oversight-as-it-eyes-global-crypto-hub-status">Hong Kong tightening oversight as it eyes global crypto hub status</h2>
Hong Kong has been striving to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-genai-sandbox-fintech" rel="null" target="null" text="null" title="null">establish itself as a global cryptocurrency hub</a>, attracting investors and related businesses to the special administrative region’s digital assets industry.&nbsp;
As of June 1, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/hong-kong-unlicensed-crypto-exchanges" rel="null" target="null" text="null" title="null">operating an unlicensed virtual asset trading platform</a> (VATP) in Hong Kong became a criminal offense.&nbsp;
At present, there are only two fully licensed virtual asset trading platforms in Hong Kong: Hash Blockchain and OSL Digital Securities.&nbsp;
OSL did not immediately reply to Cointelegraph’s request for comments.&nbsp;
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.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" rel="null" target="null" text="null" title="null">How Chinese traders and miners get around China’s crypto ban</a>

Hong Kong considers new licensing regime for OTC crypto trading

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Cointelegraph

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