According to Foresight News, Hong Kong concluded its public consultation on the licensing system for over-the-counter (OTC) providers of virtual assets on April 12. The system only covers a very limited number of cryptocurrencies, including Bitcoin and Ethereum. The Hong Kong Virtual Asset Industry Association has called on the government to exempt USDT and USDC from trading restrictions to avoid significant impact on business development.
Some practitioners have expressed concerns that reducing the number of tradable currencies could lead to businesses moving to other regions. They are also worried about the proposed enhanced customer due diligence, which includes a transfer threshold of 8000 Hong Kong dollars, fearing it could lead to customer loss. Additionally, the requirements for appointing a compliance officer and a money laundering reporting officer could pose significant cost pressures for small OTCs.