Hong Kong will accelerate the approval of licenses for encrypted trading platforms, and plans to regulate stablecoins and custodial services

On December 11, Joseph Chan, the Acting Secretary for Financial Services and the Treasury of Hong Kong, stated that Hong Kong is exploring ways to accelerate the licensing approval process for cryptocurrency trading platforms. The Securities and Futures Commission (SFC) plans to establish a "consultation group" early next year to provide support for licensed platforms.

In addition, the government is also promoting stablecoin regulation and plans to submit relevant bills to the Legislative Council within this month. It requires all issuers of stablecoins pegged to legal tender currencies to apply for a license from the Hong Kong Monetary Authority (HKMA).

At the same time, Hong Kong authorities also plan to propose licensing regulations for crypto asset custody services next year in order to further improve regulatory framework of cryptocurrency industry.