ChainCatcher news, according to Hong Kong Wen Wei Po, the Deputy Secretary for Financial Services and the Treasury, Chen Haolian, stated at the Legislative Council's Web3 and Virtual Assets Development Subcommittee meeting that, in addition to the current regulatory system for virtual asset trading platforms, establishing a licensing system for fiat-backed stablecoin issuers will strengthen Hong Kong's virtual asset regulatory framework to align with international standards. The system will have a transition period, allowing issuers with meaningful and substantial issuance activities to continue operating during the "grace period" of 6 months after the system comes into effect, but they must submit their license applications within the first 3 months; otherwise, they must orderly cease operations by the end of the 4th month.

ChainCatcher news, according to a report from the Hong Kong Economic Journal, OSL Group's Chief Financial Officer Hu Zhenbang revealed in a recent interview that Hong Kong may introduce a licensing system for cryptocurrency "exchange shops" in the short term.In addition, Hu Zhenbang stated that once the licensing system comes into effect, the account opening process, including identity verification, will be strictly regulated. Moreover, in recent years, the SAR government's attitude towards the development of virtual assets has been very positive, with new policies being introduced almost every quarter to promote market development. The characteristics of Hong Kong's virtual asset licenses also expand the advantages of the entire market.

ChainCatcher news, according to Fortune magazine, the early general election in the UK has prompted the cryptocurrency industry to seek connections with the Labour Party in hopes of gaining support for regulatory policies, although the Labour Party's future stance remains unclear. Sources say that the UK's Financial Conduct Authority (FCA) is expected to release its proposed draft of the cryptocurrency licensing regime by the end of this year.

ChainCatcher news, according to the Hong Kong Economic Journal, the public consultation on the licensing system for virtual asset over-the-counter (OTC) service providers in Hong Kong ended last Friday, but the system only covers a very limited number of cryptocurrencies such as Bitcoin and Ethereum, raising concerns among some practitioners.In response to this situation, the Hong Kong Virtual Asset Industry Association has called on the authorities to exempt trading restrictions on USDT and USDC to avoid significant impacts on business development. Some practitioners have expressed that the reduction in tradable cryptocurrencies may lead to a shift of business to other regions. Additionally, some practitioners are concerned about the proposed 8,000 HKD transfer threshold for enhanced customer due diligence, believing it may result in customer loss. At the same time, requirements such as appointing a compliance officer and a money laundering reporting officer may pose significant cost pressures for small OTCs.

According to ChainCatcher news and a report by Zhitong Finance, the Secretary for Financial Services and the Treasury, Christopher Hui, responded in writing to lawmakers, stating that the Securities and Futures Commission (SFC) strengthened information dissemination in September last year, releasing multiple pieces of information regarding virtual asset trading platforms, including a list of suspicious virtual asset trading platforms, to provide the public with clear, transparent, and timely information. As of February 14 this year, a total of 14 trading platforms are listed on that list.In the past three years (2021 to 2023), the overall number of crimes involving virtual assets was 1,397, 2,336, and 3,415, with amounts involved being 824 million, 1.704 billion, and 4.398 billion respectively. As for the number of arrests and prosecutions, the police will now only consolidate relevant figures based on individual circumstances for specific cases. For example, in the JPEX case, as of yesterday (the 20th), the police have arrested 70 people, and no one has been prosecuted yet.In addition, as of February 2 this year, the SFC and the police have exchanged intelligence on over 100 virtual asset trading platforms or virtual asset-related activities. The SFC and the police will decide whether to establish a special investigation based on a basket of factors, including whether there is a connection to Hong Kong, whether it involves violations of relevant laws, the number of people involved, and the amounts involved. To further improve the regulatory framework, the Financial Services and the Treasury Bureau launched a public consultation on February 8 this year regarding the legislative proposal for a licensing system for virtual asset over-the-counter trading service providers, with the consultation period ending on April 12. Additionally, the Financial Services and the Treasury Bureau and the Monetary Authority jointly conducted a public consultation in December last year on the regulation of stablecoin issuers, with the consultation period ending on February 29 this year. Depending on the consultation results and the progress of preparatory work, the government will submit a bill regarding the aforementioned licensing system to the Legislative Council as soon as possible.

ChainCatcher news, Hong Kong has launched a public consultation on the legislative proposal for the licensing system of virtual asset over-the-counter trading service providers, which will last for two months until April 12. The legislative proposal focuses on:Requiring anyone who provides any virtual asset and fiat currency spot trading services in Hong Kong as a business to apply for a license from the Commissioner of Customs and Excise;Covering all virtual asset over-the-counter trading services, regardless of whether the services are provided through physical stores and/or other platforms;Granting the Commissioner of Customs and Excise the authority to supervise the compliance of licensed operators in combating money laundering and terrorist financing, and to enforce the statutory and regulatory requirements of the new system;Providing transitional arrangements to ensure the effective implementation of the regulatory system.

ChainCatcher news, the Hong Kong Securities and Futures Commission (SFC) issued a circular yesterday regarding the transitional arrangements for a new licensing regime specifically for virtual asset trading platforms. The aim is to provide a reasonable amount of time for virtual asset trading platforms that were providing virtual asset services in Hong Kong before June 1, 2023, and are prepared to comply with the SFC's guidelines, to apply for licenses and review and revise their systems and monitoring measures to comply with applicable laws and regulatory requirements. Virtual asset trading platforms that do not intend to apply for a license should begin to wind down their operations in an orderly manner.According to the circular, virtual asset trading platforms that were providing virtual asset services in Hong Kong before June 1, 2023, and have a meaningful and substantive business, may continue to provide virtual asset services in Hong Kong during the period from June 1, 2023, to May 31, 2024 (i.e., within the first 12 months from June 1, 2023), in accordance with the arrangements without violating the licensing requirements under the Anti-Money Laundering Ordinance. Virtual asset trading platforms must have been providing virtual asset services in Hong Kong before June 1, 2023, to be eligible for the transitional arrangements. (Source link)

ChainCatcher news, HKIEF Hong Kong Innovation Crypto Fund stated on social media that Hong Kong will establish a VASP (Virtual Asset Service Provider) licensing system, while implementing dual licensing supervision.Securities Token Exchange: The current system under the Securities and Futures Ordinance regulates securities token trading conducted by virtual asset trading platforms. Required licenses: Type 1 and Type 7.Non-Securities Token Exchange: Regulated under the Anti-Money Laundering Ordinance's Virtual Asset Service Provider system for non-securities token trading conducted by virtual asset trading platforms. Required licenses: VASP license + Trust license. Among them, stablecoins: USDT, USDC are classified as securities; BTC, ETH, etc., and OTC businesses are classified as non-securities.The virtual asset service provider licensing system is expected to take effect on June 1, 2023, and by May 31, 2024, Hong Kong needs to fully license virtual asset activities. (source link)

ChainCatcher news, Financial Secretary Paul Chan of the Hong Kong Special Administrative Region Government stated in a video address at the 2WEB3 FEST Hong Kong 2023 event that the virtual asset industry has been steadily developing in Hong Kong over the past few years.Paul Chan mentioned that under the principle of "same activity, same risk, same regulation," Hong Kong will introduce a licensing system for virtual asset service providers in June this year. "We believe that by establishing a suitable regulatory licensing system and eliminating bad actors in the industry, it will help enhance the overall image of the industry and promote the healthy, orderly, and responsible development of the virtual asset industry." (source link)

ChainCatcher news, Hervé Maurey, a member of the French Senate Finance Committee, proposed an amendment on Tuesday that aims to require any provider wishing to engage in digital asset services to register in France by October 2023 at the latest.The amendment states that the recent bankruptcy of FTX highlights the inherent risks of any investment in crypto assets. France currently has a two-tier mechanism divided into mandatory registration and optional certification, allowing cryptocurrency companies to operate in the country without a full license until 2026. The amendment was passed in the Senate this week and will be submitted to the French Parliament next year. (Source link)

ChainCatcher news, the Hong Kong Legislative Council has passed the amendment to combat money laundering and terrorist financing systems in the third reading, which will establish a licensing system for virtual asset service providers.The Secretary for Financial Services and the Treasury, Christopher Hui, stated that the new system will take effect on June 1 next year, and virtual asset trading platforms will be required to comply with the regulations on combating money laundering and terrorist financing, just like traditional financial institutions. (source link)