Hong Kong Tightens Oversight on OTC Crypto Trading Services
In recent reports, Hong Kong is considering involving the local securities regulator in licensing over-the-counter crypto trading services. The Securities and Futures Commission (SFC) and the Customs and Excise Department may jointly oversee these services to address regulatory gaps and enhance the city’s regulatory framework.
New Licensing Regime Explored for OTC Crypto Services
The SFC is exploring a new licensing regime for OTC crypto services in collaboration with the C&ED, following the JPEX scandal that resulted in significant losses. Discussions indicate a shift towards a combined regulatory approach, with the SFC consulting industry players on potential new regulations and evaluating cryptocurrency custodian services.
Concerns and Regulatory Developments in Hong Kong
Despite evolving regulatory landscape and the introduction of new licensing requirements for crypto exchanges in Hong Kong, concerns persist among local players. Alessio Quaglini, co-founder and CEO of crypto custodian Hex Trust, has expressed worries about proposed OTC regulations, suggesting potential implications for businesses operating in the region.
