To mitigate the money laundering and terrorist financing (ML/TF) risks and protect investors, the legislative proposals include:
- Requiring any person who conducts a business in providing services of spot trade of any VA for money in Hong Kong to be licensed by the Commissioner of Customs and Excise (CCE);
- Covering all VA OTC services irrespective of whether the services are provided through a physical outlet and/or other platforms;
- Providing powers for CCE to supervise the anti-money laundering and counter-terrorist financing conduct of licensees, and enforce the statutory and regulatory requirements under the new regime; and
- Providing transitional arrangement to facilitate the effective implementation of the regulatory regime.
The consultation will last for two months until April 12, 2024.