According to PANews, the Hong Kong government intends to improve the regulation of virtual asset transactions. The Deputy Secretary for Financial Services and the Treasury, Chan Ho-lim, said that the second round of public consultation on the regulation of virtual asset over-the-counter (OTC) transactions will be completed next year.
A proposed licensing regime to regulate virtual asset custody service providers will also be put forward for consultation next year to ensure that the safekeeping of digital assets complies with international standards.
He stressed that only by providing a transparent, certain and predictable regulatory environment can financial innovation be effectively encouraged. Before the end of this year, a draft bill will be submitted to the Legislative Council to establish a licensing system for issuers of legal currency stablecoins.
He pointed out that many financial institutions choose to set up their regional headquarters or largest regional operations in Hong Kong, making Hong Kong an ideal place for Web 3 companies to start and expand.