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.

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.