Chan Ho-lim: The Hong Kong government plans to launch a virtual asset custody licensing system for consultation next year

Chen Haolian, Deputy Director of the Hong Kong Financial Affairs and Treasury Bureau, plans to complete the second round of public consultations on the regulation of off-exchange trading (OTC) of virtual assets next year. He will also propose a proposed licensing system for regulating virtual asset custodial service providers for consultation next year to ensure that the safekeeping of digital assets conforms to international standards.

Chen Haolian emphasized that the virtual asset trading platform licensing system introduced in June last year was an important milestone. Before the end of this year, regulations will be submitted to the Legislative Council for the establishment of a licensing system for fiat stablecoin issuers, building a safe framework for this emerging market. He pointed out that many financial institutions choose to set up regional headquarters or the largest regional business in Hong Kong, which means that third-generation Internet (Web 3) companies in Hong Kong can easily access a large number of potential customers, investors, and business partners.