“The FSTB and SFC concluded consultations on virtual regimes and plan to introduce a new bill to LegCo next year.”, — write: www.coindesk.com
The proposals, developed after a two-month public consultation that drew more than 190 responses, are intended to create a licensing framework for virtual asset dealing and custodial services. The rules will fall under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance and mirror existing requirements for securities dealing.
Hong Kong’s government is developing a regulatory environment to encourage the development of the city’s crypto industry in an effort to establish it as Asia’s crypto hub of choice over Singapore. Its stance contrasts with China’s, which is intensifying its crackdown on virtual currencies.
In February, the SFC announced new licensing regimes for over-the-counter trading alongside a review of derivatives and margin trading for virtual assets. In April, it greenlit staking services for licensed exchanges and funds, albeit under strict asset control and risk disclosure requirements. Spot crypto exchange-traded funds have been trading since 2024.
The proposed custodian regime focuses on securing private keys and protecting client assets, while the dealer rules align with licensing expectations for securities intermediaries. Both are part of the SFC’s broader ASPIRe roadmap aimed at improving access to regulated virtual asset markets.
The SFC also started a consultation to extend oversight to virtual asset advisers and managers. The regime would follow the “same business, same risks, same rules” principle and apply standards comparable to those for securities advisory and asset management services, the regulators said. Comments are due by Jan. 23.
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The new directive, which operates alongside MiCA, expands tax data sharing, sets a July 1 compliance deadline for exchanges across the bloc.
- The European Union’s tax-reporting directive, effective Jan. 1, mandates crypto-asset service providers to report detailed user and transaction data to national tax authorities.
- The DAC8 rules aim to close tax reporting gaps in the crypto economy, enhancing visibility similar to that of bank accounts and securities.
- Crypto firms have until July 1 to comply with DAC8’s reporting requirements, after which non-compliance may result in penalties.
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