According to the Hong Kong Economic Journal, the related industry has absolutely mixed reactions to Hong Kong’s certification mechanism for OTC trading of virtual assets.
The companies are concerned about Hong Kong’s over-the-counter (OTC) certification mechanism, which stipulates that the virtual assets are to be traded on platforms certified by the Securities and Futures Commission. By bringing the tradable assets down to only Bitcoin and Ethereum, industry observers are seemingly apprehensive about its substantial effect on OTC activities. This is all the more when one considers stablecoin transaction limitations.
Customs officials have declared that the consultation process has come to an end. However, the doors are now open to obtain viewpoints and proposals, following which the bill will be forwarded to the Legislative Council.
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All in all, the intended limitations placed on stablecoins, such as USDT and USDC, have not gone down well with the industry players.
The consultation report highlights deep client conscientiousness processes and makes it mandatory for hiring compliance and money laundering officials. This is bound to be financially heavy on the smaller OTC businesses. The industry representatives have earnestly suggested a middle path, understanding the diversified market space and client choices.
While all the discussions are taking place, the stakeholders remain to reach out to the concerned officials to rethink Hong Kong’s OTC certification mechanism and customize regulations wherever required.
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Hong Kong has declared trading consent for Bitcoin ETFs and Ethereum ETFs.
