The Hong Kong government is now planning for legislation on stablecoins and virtual asset OTC services, according to an official release.
The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) launched a public consultation in December on regulating stablecoin issuers and proposed a licensing regime for providers of OTC trading services.
The Secretary for Financial Services and the Treasury, Christopher Hui, said, “The Government will submit bills on the above licensing regimes to the Legislative Council as soon as practicable.”
Additionally, the FSTB launched a consultation on licensing OTC trading services, with proposals set to end on April 12.
In spite of the efforts to introduce Hong Kong as a crypto hub, the Securities and Futures Commission discovers a rising number of crypto-related crime cases. Last year, there were 3,415 cases including $562.6 million of illegal money, compared to 2,336 cases in 2022.
The authorities are fighting back against the bad actors. The evidence for this is the closure of JPEX crypto exchange and the arrest of 70 individuals, including no prosecutions yet, as of February 20.
Hong Kong tries to strike a balance between encouraging innovation in the crypto sphere and regulatory compliance and anti-money laundering efforts.
Also Read: Hong Kong Consults Public on OTC Crypto Trading Rules
