Hong Kong is considering involving the SFC in regulating over-the-counter (OTC) virtual asset trading services, people familiar with the matter said

Hong Kong is considering involving the Securities and Futures Commission (SFC) in regulating over-the-counter (OTC) virtual asset trading services. Sources familiar with the matter revealed that the SFC has consulted the industry on a potential new licensing regime for cryptocurrency OTC services. Under the regime, the SFC would work with the Customs and Excise Department (C&ED) to regulate counterparties. 
The previous proposal, announced in February 2024, saw the planned OTC regulation and licensing regime previously handled solely by the C&ED. The source added that the SEC has also consulted with relevant firms in recent months regarding the introduction of a new licensing regime for cryptocurrency custody services. Discussions on both licenses are still at an early stage and are subject to change.
A spokesman for the SFC said on Sept. 12 that in order to promote the sustainable and responsible development of the virtual asset industry in Hong Kong, the SFC is working closely with the government and other regulators to establish a robust, clear and consistent regulatory environment in Hong Kong. (South China Morning Post)