VA license regime outlined

Hong Kong plans to establish a licensing regime for virtual asset service providers and has been contemplating the regulation of payment-related "stablecoins" to ensure the orderly development and operation of the sector, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu wrote in his blog.

The proposed licensing regime, which will be implemented through amending the Anti-Money Laundering and Counter-Terrorist Financing Ordinance, will require all VA exchanges to apply for a license from the Securities and Futures Commission before providing services in Hong Kong.

Both securities-type VAs and non-securities VAs such as bitcoin are subject to the regime.

The regulator plans to introduce an amendment bill to the Legislative Council later this year.