Hong Kong Government Pushes for Licensing Bills on Stablecoin and OTC Crypto Trading
The Hong Kong government aims to submit licensing bills for stablecoin and over-the-counter (OTC) crypto trading frameworks in order to regulate the crypto industry and enhance investor protection.
Christopher Hui, the Secretary for Financial Services and the Treasury, made the announcement in response to a lawmaker at the Legislative Council.
The Financial Services and the Treasury Bureau (FSTB) launched a public consultation earlier this month on legislative proposals for introducing a licensing regime specifically designed for providers of OTC crypto trading services.
The consultation period is set to conclude on April 12, allowing stakeholders and the public to provide their input.
In addition to the OTC trading framework, the FSTB and the Hong Kong Monetary Authority (HKMA) jointly initiated a consultation in December on regulating stablecoin issuers.
The proposal suggests that all stablecoin issuers referencing fiat currencies should obtain a license from the HKMA.
The consultation period for this proposal ended on February 29.
Based on the outcomes of the consultations and the progress of preparatory work, the government intends to submit bills related to these licensing regimes to the Legislative Council promptly, according to Hui.
“Subject to the consultation outcomes and progress of the preparatory work, the Government will submit bills on the above licensing regimes to the Legislative Council as soon as practicable.”
Highlighting the need for regulation, Hui mentioned that the Securities and Futures Commission (SFC) has been increasingly cracking down on crypto-related criminal cases.
In 2021, there were 1,397 cases, which rose to 2,336 cases in 2022, and further increased to 3,415 cases in 2023.
The total amount of
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