New Hong Kong crypto scheme could see changes with SFC involvement in OTC rules

Hong Kong is exploring whether to have the Securities and Futures Commission (SFC) involved in regulating over-the-counter (OTC) virtual asset trading services, along with the Customs and Excise Department (C&ED), as the city struggles to regulate the industry.

The SFC has sought opinions from industry players about potentially putting in place a new licensing regime for cryptocurrency OTC services, which will see the securities regulator work with the C&ED to oversee these companies, according to people familiar with the matter who declined to be named because the discussions were private.