Amid rising fraud cases linked to virtual asset trading platforms (VATPs), public apprehension about the safety of engaging in virtual asset (VA) activities has grown. These incidents have exposed the participation of VA over-the-counter (OTC) shops, prompting the Hong Kong Government to consider extending regulatory oversight to VA OTC services.
On February 8th 2023, the Financial Services and the Treasury Bureau (FSTB) issued a call for public input on draft legislation that would establish a licensing framework for VA OTC service providers. This includes a six-month transitional period after enactment, during which all VA spot trading service providers must obtain a license, excluding VATPs and entities already holding specific licenses.
This flyer summarizes key aspects of this proposal and what it means for VA OTC shops.
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