HKIEF Hong Kong Innovation Crypto Fund said on Twitter that Hong Kong will establish a VASP (virtual asset service provider) licensing system and implement dual licensing supervision. 1. Security token trading exchange: The current system under the Securities and Futures Ordinance regulates security token transactions conducted by virtual asset trading platforms. Required No. 1 and No. 7 licenses. 2. Non-security token exchange: According to the virtual asset service provider system under the Anti-Money Laundering Ordinance, non-security token transactions conducted by virtual asset trading platforms are regulated. Required VASP license + trust license. Among them, stablecoins: USDT, USDC belong to securities; BTC, ETH, etc., and OTC business belong to non-securities. It is expected that the virtual asset service provider licensing system will take effect on June 1, 2023, and Hong Kong will need to fully license virtual assets by May 31, 2024 at the latest.