PANews reported on October 28 that according to Oriental Daily, the Hong Kong government intends to improve the regulation of virtual asset transactions. The Deputy Secretary for Financial Services and the Treasury, Chan Ho-lim, said that he plans to complete the second round of public consultation on the regulation of over-the-counter (OTC) transactions of virtual assets next year. He will also put forward a proposed licensing system for regulating virtual asset custody service providers for consultation next year to ensure that the safe custody of digital assets meets international standards.
He stressed that the concept of virtual assets is clear, and believes that "only by providing a transparent, certain and predictable regulatory environment can financial innovation be effectively encouraged". Before the end of this year, a bill will be submitted to the Legislative Council to establish a licensing system for issuers of fiat stablecoins to build a security framework for this emerging market. He pointed out that many financial institutions choose to set up regional headquarters or the largest regional business in Hong Kong, which means that Web 3 companies in Hong Kong can easily access a large number of potential customers, investors and business partners, making Hong Kong an ideal place for their entrepreneurship and expansion.
