Hong Kong’s top financial official said that the local government will soon publish a consultation on a proposed regulatory framework for over-the-counter crypto trading platforms as risks mount.

Christopher Hui, Secretary for Financial Services and the Treasury, wrote in a blog post published today that OTC venues are easily accessible to the general public, and some were found involved in fraud cases.

“In fact, OTC venues have played a certain role in some of the fraud cases involving some unlicensed VA trading platforms last year, having misled investors to channel funds to these unlicensed platforms,” Hui said. “Therefore, we believe that it is necessary to bring OTC venues under regulation, and we will launch a consultation very soon on the proposed regulatory framework.”

In June …