OTC industry hopes to establish an organization to supervise virtual asset trading

2023-10-11

The virtual asset trading platform JPEX, which is suspected of conspiracy to commit fraud, attracts money through a number of virtual currency over-the-counter (OTC) shops. However, OTC is currently not subject to any government supervision, and there are risks of crime and money laundering. The OTC industry believes that the legislative and regulatory process takes time and cannot keep up with the development of the industry. It is recommended to establish an industry organization first, start with industry supervision, and formulate know-your-customer (KYC) and anti-money laundering (AML) standards. It also hopes to cooperate with the police to exchange suspicious wallets Information to intercept money laundering and fraud crimes at their source.

The Panel of Financial Affairs of the Legislative Council will discuss the regulation of virtual asset trading platforms. Regarding the possible forms of OTC supervision, the Financial Services and the Treasury Bureau responded that the government and regulatory agencies will review regulatory measures from time to time and consider introducing appropriate measures in response to market development, including regulations. To manage related businesses other than the real estate trading platform, appropriate regulatory agencies, forms, and regulatory requirements will be taken into consideration.

Source:信報