Hong Kong Launches Public Consultation on Digital Asset OTC Rules

Wu Chi-wai announced the start of Hong Kong’s public consultation on OTC digital asset trading and custody, effective June 27, 2025.

This initiative aims to align Hong Kong’s digital asset regulations with international standards, enhancing investor confidence and attracting institutional participation.

Hong Kong Moves to Align Digital Asset Rules with Global Standards

The Hong Kong SAR Government, spearheaded by the Financial Services and the Treasury Bureau, has launched a public consultation to address over-the-counter trading and custody of digital assets. According to Wu Chi-wai, this consultation will guide the development of a robust regulatory framework. In his words:

Industry leaders like Deng Chao have emphasized the importance of aligning with global anti-money laundering standards. This effort is seen as a strategic move to enhance Hong Kong’s position in the global digital market.

“The Hong Kong SAR Government has consulted the public on over-the-counter trading and custody services of digital assets. The consultation document elaborates on the first-round consultation and outlines the key topics for the second-round consultation. The public consultation window is open until August 29, 2025.”

Industry leaders positively respond, with CEO Deng Chao advocating for institutional and multinational engagement. The lack of negative pushback indicates broad support for these regulatory updates. Stakeholders view this as necessary to legitimize Hong Kong’s digital asset framework.

HK$1.60 Billion Fraud Drives Push for Stricter Rules

Did you know? The 2023 JPEX fraud, involving HK$1.60 billion, prompted Hong Kong’s push for stricter digital asset regulations, aiming to prevent similar incidents.

Bitcoin’s current valuation stands at $107,083.71, with a market cap of $2.13 trillion. The cryptocurrency’s 24-hour trading volume decreased by 16.89%, reflecting market consolidation. Recent figures show Bitcoin’s price change includes a 28.25% rise over 90 days, as reported by CoinMarketCap.

The Coincu research team anticipates that these regulations will stabilize the digital asset market in Hong Kong. Strengthening compliance with international standards may also position Hong Kong as a more attractive hub for digital asset businesses. The focus is on fostering innovation while ensuring investor protection and regulatory adherence.