According to Deep Tide TechFlow, Deputy Secretary for Financial Services and the Treasury Chan Haolian stated on October 27 that the Hong Kong government plans to complete the second round of public consultation on the regulation of virtual asset over-the-counter (OTC) trading by 2025, and will simultaneously launch a consultation scheme for the licensing system for virtual asset custodians to ensure the safe custody of digital assets meets international standards.
Chan Haolian emphasized that Hong Kong has a clear regulatory concept for virtual assets and will submit a draft bill for a licensing system for fiat stablecoin issuers to the Legislative Council by the end of 2024. He stated that a transparent, certain, and predictable regulatory environment is key to driving financial innovation.
Since the introduction of the licensing system for virtual asset trading platforms in June 2023, Hong Kong has attracted numerous financial institutions to establish regional headquarters, providing Web3 companies with convenient access to potential customers, investors, and business partners.