Hong Kong Treasury Secretary Restructures Virtual Asset OTC Norms, Oct 30

Key Points:

• Hong Kong’s Economic Services and Treasury Secretary plans crucial amendments to regulations for virtual asset OTC exchanges, enhancing oversight and security.
• Proposed changes aim to empower the China Securities Regulatory Commission to intervene in cases of fraudulent practices and misinformation within the virtual asset market.

Hong Kong’s Economic Services and the Treasury Secretary, Hui Ching-yu, recently unveiled plans for significant amendments to the regulations governing virtual asset OTC exchanges.

In a move aimed at reinforcing the city’s regulatory framework, Hong Kong seeks to streamline its oversight of the burgeoning virtual asset market. The proposed amendments, expected to be implemented in the coming months, are poised to introduce comprehensive regulatory measures for the operation of virtual asset OTC rules platforms.

In a bid to address concerns related to the promotion and advertising of virtual assets, prominent figure Xu Zhengyu highlighted the existing mechanisms in place to monitor the conduct of celebrities and internet personalities endorsing virtual asset platforms. Xu Zhengyu emphasized the role of the “Anti-Money Laundering Ordinance” in empowering the China Securities Regulatory Commission with robust enforcement capabilities, particularly concerning the promotion and advertisement of virtual assets.

China Securities Regulatory Commission’s New Powers

Under this new ordinance, the China Securities Regulatory Commission is vested with the authority to intervene in cases of fraudulent practices and misinformation. The commission can issue suspension and cease orders to parties found to be engaged in unlawful activities. Furthermore, should the offending parties persist in their illegal behavior, the commission has the power to seek legal injunctions from the court.

The proposed amendments and the reinforced regulatory mechanisms underscore Hong Kong’s commitment to maintaining a secure and transparent virtual asset ecosystem. The move signals a proactive approach by the government to safeguard investors’ interests and ensure the stability of the financial landscape in the face of the rapidly evolving virtual asset OTC rules sector. As the digital economy continues to expand, Hong Kong’s concerted efforts to bolster regulatory oversight are poised to enhance investor confidence and foster sustainable growth in the virtual asset OTC rules market.

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