DeFi

April

Planet

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 Hong Kong’s government has <a style="color: #0000ff;" href="https://www.fstb.gov.hk/fsb/en/publication/consult/doc/VAOTC_consultation_paper_en.pdf" rel="noopener noreferrer nofollow">released a public consultation document</a> over proposed regulations that will tighten restrictions on over-the-counter (OTC) cryptocurrency trades. The proposed regulations align with the nation’s Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), which has been in effect since June 2023.
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OTC trades involve direct transactions between buyers and sellers without the involvement of a third-party or centralized entity, such as an exchange.&nbsp;
The proposed regulations intend to restrict the OTC category to only spot trades of digital assets for fiat currency, while digital assets trading will fall under the standard virtual asset trade provider (VATP) license. Additionally, peer-to-peer (P2P) trading will be categorized outside of OTC.&nbsp;
Hong Kong authorities estimate the presence of around 200 physical virtual asset&nbsp; OTC outlets, including crypto ATMs, and approximately 250 active digital platforms providing VA services within the region.
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This new regulation would demand these OTC traders follow the same standards as every other licensed virtual asset service provider (VASP) in Hong Kong. Thus, OTC traders must obtain an operational license from the region’s Commissioner of&nbsp; Customs and Excise, provide a local management office address and a correspondence address, and outline plans for locally storing books and records.&nbsp;
Virtual asset trading platforms (VATPs) and stablecoin issuers not authorized by the Hong Kong Monetary Authority (HKMA) would also be prohibited from offering services to OTC traders within the island’s jurisdiction.
The public consultation will last until April 12, and all Hong Kong citizens are invited to share their comments and opinions on the proposed regulations.&nbsp;
This regulatory move reflects Hong Kong’s commitment to maintaining its status as a leading global crypto hub. The region’s government has remained proactive in advancing its crypto adoption efforts while creating its own infrastructure despite China’s stance against virtual currencies. Last October, the <a style="color: #0000ff;" href="https://defi-planet.com/2023/10/hong-kongs-hkma-release-report-on-successful-first-phase-cbdc-pilot-trials/" rel="noopener noreferrer nofollow">Hong Kong Monetary Authority released a report about the successful first-phase CBDC pilot trials</a>, which aims to transform its existing retail payment infrastructure.&nbsp;
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The post <a href="https://defi-planet.com/2024/02/hong-kong-government-initiates-public-consultation-on-stricter-regulations-for-otc-crypto-trades/" rel="noopener noreferrer nofollow">Hong Kong Government Initiates Public Consultation on Stricter Regulations for OTC Crypto Trades</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Hong Kong Government Initiates Public Consultation on Stricter Regulations for OTC Crypto Trades

DeFi Planet

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