On September 12, it was reported that Hong Kong is currently exploring whether to involve the Securities and Futures Commission (SFC) in regulating virtual assets over the counter (OTC) services together with the Hong Kong Customs and Excise Department (C & ED). According to people familiar with the matter, the Hong Kong Securities and Exchange Commission has consulted with industry players on the possible implementation of a new licensing regime for cryptocurrency over the counter services, which would allow the securities regulator to work with the C & ED to oversee the companies as the discussions are private. The planned OTC regulations and licensing were previously the only area of the C & ED, according to a proposal made public in February. The over the counter service facilitates direct and private high-volume cryptocurrency transactions between the two parties. The Hong Kong Securities Supervision Commission has also consulted firms in recent months about introducing a new licensing regime for cryptocurrency custody services, according to people familiar with the matter. Discussions on both licenses are still at an early stage and could change, they said.