Hong Kong announced that it will begin the process “very soon” and intends to comment on a framework for over-the-counter (OTC) cryptocurrency venues.
A blog post on Friday from the Financial Services and the Treasury Bureau (FSTB) stated that the consultation would encompass virtual-asset (VA) outlets, including online platforms and stores.
“In fact, OTC venues have played a certain role in some of the fraud cases involving some unlicensed VA trading platforms last year, having misled investors to channel funds to these unlicensed platforms,” according to the FSTB. “Therefore, we believe that it is necessary to bring OTC venues under regulation, and we will launch a consultation very soon on the proposed regulatory framework.”
In October, the bureau announced that, in response to recent attempts to regulate the industry, it aimed to create a “vibrant sector and ecosystem” for virtual assets. It established a licencing system for cryptocurrency businesses that went into effect in June of last year. In order for businesses to stay in operation in the nation, they must obtain approval before June of this year.
Hong Kong is also offering regulatory framework consultations to stablecoin issuers. Issuers of fiat-backed stablecoins would need to apply for a licence from the Hong Kong Monetary Authority under the proposed regulatory framework.