Christopher Hui: Securities and Futures Commission to Lead Regulation of Virtual Asset Trading and Custody Services

According to Ming Pao, the Hong Kong Financial Services and the Treasury Bureau and the Securities and Futures Commission (SFC) are conducting a two-month public consultation on the licensing system for virtual asset trading and custody service providers. The new system will be mainly regulated by the SFC, while the Hong Kong Monetary Authority (HKMA) will be responsible for the front-line supervision of the banking sector. Christopher Hui, Secretary for Financial Services and the Treasury, said that the move aims to centralize the management of regulatory-related transactions and avoid "regulatory arbitrage." The new system requires all virtual asset trading service providers to be licensed or registered, including existing intermediaries, virtual asset trading platforms, and over-the-counter trading operators licensed or registered by the SFC. The two consultations are expected to publish a summary in the first half of next year. [Foresight News]