Date: August 4, 2025
Topic: The Impact of Hong Kong's Stablecoin Regulation on the OTC Industry and One Satoshi's Response Strategy
Interviewer: Alma (Founder of Techub News)
Interviewee: Roger Li (Founder and CEO of One Satoshi)
On August 1, 2025, Hong Kong will officially implement the (Stablecoin Regulation), bringing USDT, USDC, and other 'designated stablecoins' under regulatory scrutiny. The regulations clearly prohibit offering, promoting, or selling stablecoins without a license and do not provide a transition period, forcing some OTC stores to suspend operations, sparking heated discussions in the industry. Techub News interviewed Roger Li, founder and CEO of the OTC store One Satoshi, to deeply explore the actual impact of this regulation, business responses, and judgments on future compliance paths.
Is the business suspension a proactive choice or a reluctant response?
Roger Li: We started doing OTC in 2021, and over the course of more than three years, we have expanded from a small store to several locations across all districts of Hong Kong. In our original business, 50%-60% was the exchange of fiat currency for stablecoins like USDT and USDC. However, after the regulations were implemented on August 1, we immediately removed this part of the business.
Our decision to suspend was based on respect for the law and consideration of the risks to our employees and users. The new regulations clearly state: if stablecoins are offered, advertised, or promoted during the business process, it constitutes a regulated activity, which will face fines or even imprisonment if verified.
Especially since the regulations emphasize 'offer actions during the business process,' whether operated in the name of a company or an individual, could potentially violate the law. If employees trade on behalf of clients, individuals may also bear criminal liability. Therefore, we chose to stop related businesses before obtaining a license.
So is the OTC business 'dead'?
Roger Li: No, we still provide fiat currency exchange services for mainstream cryptocurrencies such as BTC, ETH, BNB, and SOL. The regulations currently do not restrict the exchange activities of these cryptocurrencies, as long as they are not stablecoins, and are not facilitated through exchanges or by issuers, they fall outside the current stablecoin regulation scope.
The cryptocurrencies we have chosen are all mainstream coins available to retail investors on licensed exchanges in Hong Kong, which indicates they are relatively reliable in terms of compliance and liquidity. We have not suspended all business, but have focused our operations within the currently permitted scope.
So does this mean that licenses will be mandatory moving forward? What is the so-called VA Dealing license?
Roger Li: We understand that the entire industry will move towards licensing. The government is currently conducting public consultations on the so-called VA Dealing (virtual asset trading intermediary) license, which will end at the end of August.
The VA Dealing license can be understood as a compliance license exclusive to OTC, no longer the MSO (Money Service Operator) license issued by customs in the past, but under unified regulation by the Securities and Futures Commission. This change reflects the government's desire to bring cryptocurrency trading under a regulatory framework similar to that of the securities market.
The application threshold for this license is not low. It requires a registered capital of HKD 5 million, a liquidity fund of HKD 3 million, plus 12 months of operational funds. If a company's monthly operating cost is HKD 2 million, at least HKD 20 million must be prepared. In addition, the business model must be clear and transparent, and it must avoid custody of client assets, requiring back-to-back transactions with licensed exchanges.
Will the VA Dealing license suddenly take effect like the stablecoin regulations? Is there a transition period?
Roger Li: The current consultation document indicates that the VA Dealing license will not have a transition period, nor will there be arrangements for 'deemed issuance.' This means that once the law passes, unlicensed entities must immediately cease relevant business.
Therefore, we are actively preparing to apply for the relevant licenses while maintaining close communication with regulatory authorities, hoping to complete preparations before the policy is clearly implemented to minimize the impact of business interruptions.
Do you think the regulation is too strict? For example, now even retail investors holding stablecoins need to undergo KYC.
Roger Li: We believe the direction of regulation is correct; the key is the speed of execution. The Hong Kong government’s strategy is 'strict first, lenient later.' They currently believe that technical means are insufficient to support real-time monitoring required by AML (anti-money laundering), thus choosing to enforce KYC.
We support this idea. In the past few years, we actively required customers to conduct KYC. Although some customers were lost, it has resulted in enhanced risk management security. We have even refused clients suspected of money laundering because we believe long-term stable operations are more important.
Stablecoins are a crucial part of the virtual asset ecosystem, possessing both payment attributes and functions as a medium for settlement and trading. To make them compliant and serve more real-world scenarios, they must accept regulation.
So what do you think about the future compliant stablecoins in Hong Kong? Are you hoping for Hong Kong dollar stablecoins, US dollar stablecoins, or offshore RMB?
Roger Li: We welcome any compliant stablecoins. Whether it is Hong Kong dollars, US dollars, or offshore RMB, as long as there are legitimate use cases and actual business support behind them, One Satoshi is willing to participate as a market maker for their secondary market.
We hope they can connect with our existing trading network to facilitate the exchange between different currencies globally. This way, issuers can quickly obtain market liquidity, and we can expand our service range.
What are the differences between offline and online business?
Roger Li: Locally in Hong Kong, we only operate offline OTC stores. The online part is currently mainly overseas business, such as providing fiat currency exchange services for some companies in Southeast Asia, which is not affected at this time.
In addition to trading functions, our offline stores also undertake a large amount of user education work. New users often have no understanding of cryptocurrencies, and we teach them step by step how to open wallets, how to self-custody, and how to avoid scams. We also hold many free courses and invite speakers to conduct advanced courses.
What do you think of those OTC stores that are 'still operating'?
Roger Li: The regulations have only been in effect for a few days, and there is still a process for enforcement. We do not comment on the compliance of other stores, but we are unwilling to bear such legal risks.
We will not break the law just because others do. We uphold the bottom line not only for ourselves but also to protect our employees and customers.
What advice would you give to regulatory agencies?
Roger Li: We hope the regulatory authorities can accelerate the legislative process. The industry is developing too quickly; if regulation lags, it may very well cause Hong Kong to miss the opportunity to establish itself as an international virtual asset center.
Many Web3 companies are observing Hong Kong because the policy direction is clear, but the actual implementation speed is still somewhat slow. The quicker the legislation, the better it can retain projects and funding and establish an orderly and safe market environment earlier.
Finally, if you were to give a piece of advice to new entrants, what would you say?
Roger: First, always learn to self-custody. Keeping coins on an exchange is just 'seeing' them, not 'owning' them. If the platform has issues, the consequences can be severe.
Second, do not blindly chase trends. Many users like to buy meme coins or newly issued tokens but lack the ability to judge their fundamental value. We hope to teach everyone through courses and education to research projects and understand on-chain logic, rather than being led by emotions.
The essence of Web3 is decentralization and user sovereignty. Mastering knowledge and tools is essential for genuine participation.
Interview Summary:
In this long conversation with Roger Li, we see a local OTC company with a strong compliance awareness actively adapting to regulatory changes and exploring new paths for Hong Kong as a global Web3 hub. One Satoshi's choices are a reflection of many practitioners.
As Roger said: 'Upholding the bottom line is a reflection of long-termism.'
