Hong Kong virtual asset trading and custody services without a license can be sentenced to up to 7 years in prison

Planet Daily News: According to the Hong Kong Ming Pao report, the Hong Kong Securities and Futures Commission and the Financial Services Bureau have published a consultation document proposing to establish a licensing system for digital asset (virtual asset) trading and custody service providers. The document mentions that operators of virtual asset services, ranging from small-scale activities like cryptocurrency trading, withdrawals, and currency exchange to complex activities such as brokerage and large-scale transactions, will be required to apply for a license from the Securities and Futures Commission. This effectively brings over-the-counter (OTC) virtual asset platforms under regulation, with requirements significantly stricter than those proposed in last year's consultation regarding OTC platforms applying for licenses from customs. Additionally, the consultation document indicates that there will be no transition period when the law takes effect, and operators not in compliance must immediately cease operations. Those operating without a license could face fines up to 5 million dollars and imprisonment for up to 7 years.