Hong Kong plans to have the Securities and Futures Commission lead the regulation of virtual asset trading custody services

ChainCatcher news, according to Ming Pao, the Hong Kong Monetary Authority and the Securities and Futures Commission plan to consult on a licensing system for virtual asset trading and custody service providers in June, and expect to publish a consultation summary in the first half of next year. The Secretary for Financial Services and the Treasury, Christopher Hui, stated that virtual asset trading custody services will be primarily regulated by the SFC, while the HKMA will act as the frontline regulator when the services involve banks.

In addition, Hui mentioned that currently it is only the stage of consultation and gathering market opinions. Regardless of whether a "deemed licensed" arrangement will ultimately be established for service providers, sufficient expectations will be given to market participants; if the final plan is implemented according to the new proposals, it will ensure that adequate regulatory resources and other resources are "in place" to handle license applications.