Hong Kong plans for the Securities and Futures Commission to lead the regulation of virtual asset trading custody services

According to Ming Pao, the Hong Kong Monetary Authority and the Securities and Futures Commission plan to consult on the licensing system for virtual asset trading and custody service providers in June, and are expected to publish a summary of the consultation in the first half of next year. Christopher Hui, Secretary for Financial Services and the Treasury, stated that the Securities and Futures Commission will be the primary regulator for virtual asset trading and custody services, while the Hong Kong Monetary Authority will be the frontline regulator when the services involve banks. In addition, Hui mentioned that it is currently only a stage of consultation and collecting market opinions, and that market participants will be given sufficient expectations regardless of whether a "deemed to be licensed" arrangement will eventually be established for service providers. If the final plan is implemented according to the new proposed content, it will ensure that there are sufficient regulatory and other resources "in place" to handle license applications. [ChainCatcher]