On June 28, according to a report by Ming Pao in Hong Kong, the Hong Kong Securities and Futures Commission (SFC) and the Financial Services and the Treasury Bureau (FSTB) have published consultation papers proposing legislation to establish a licensing system for digital asset (i.e., virtual asset) trading and custody service providers. The documents mention that operators of virtual asset services, whether for small-scale Cryptocurrency transactions, withdrawals, or fiat currency exchanges, or for complex activities such as brokerage and large transactions, will be required to apply for a license from the SFC. This is equivalent to including over-the-counter (OTC) platforms for virtual assets under regulation, and the requirements are much stricter than those in last year's consultation regarding virtual asset OTC platforms applying for licenses from the Customs and Excise Department. At the same time, the consultation documents also mention that the law will not have a transition period or be considered as already licensed upon its enactment. Non-compliant operators must immediately cease operations, and operating without a license may result in a maximum fine of 5,000,000 yuan and imprisonment for 7 years. [BlockBeats]