MetaEra news, May 22 (UTC+8), the Hong Kong Securities and Futures Commission (SFC) stated that establishing a new regulatory licensing mechanism for over-the-counter (OTC) trading and custodial services for virtual assets is the top priority in the short term. The Executive Director of the SFC's Intermediaries Division, Yip Chi-heng, pointed out that the relevant draft has been included in the virtual asset development blueprint 'ASPIRe' released in February, and the SFC will cooperate with the government to conduct public consultations and legislative procedures, with an estimated legislative cycle of at least one year, and full implementation possibly taking up to two years. Yip emphasized that custody is a key infrastructure of the crypto market, and in light of frequent hacking incidents, it is necessary for Hong Kong to build a robust regulatory framework to enhance asset security levels, stating that 'even if risks cannot be completely eliminated, investors should still feel more secure.' In terms of product approval, the SFC plans to have licensed virtual asset exchanges lead the product application mechanism to enhance market efficiency and reduce early regulatory intervention. He mentioned that while maintaining prudent regulation, the SFC will timely expand the product choices for professional investors and promote adjustments in market mechanisms. As the industry's transparency and compliance improve, the SFC hopes to gradually 'step back' from daily interventions and shift to a supervisory role in regulation. (Source: Dongwang)
