Exclusive interview with One Satoshi founder and CEO Roger Li: What will happen to OTC stores after the implementation of stablecoin regulations in Hong Kong?

Date: August 4, 2025

Subject: The Impact of Hong Kong Stablecoin Regulations on the OTC Industry and One Satoshi's Response Strategy

Interviewer: Alma (Founder of Techub News)

Respondent: Roger Li (Founder and CEO of One Satoshi)

On August 1, 2025, Hong Kong officially implemented the "Regulation on Stablecoins," bringing "designated stablecoins" such as USDT and USDC under regulatory oversight. The regulation clearly prohibits the offering, promotion, and sale of stablecoins without a license, and no transition period has been provided. Some OTC stores have been forced to suspend operations, sparking heated discussions in the industry. Techub News interviewed Roger Li, founder and CEO of the OTC store One Satoshi, to deeply explore the actual impact of this regulation, business responses, and assessments of future compliance paths.

Is the business suspension a proactive choice or a helpless response?

RogerLi: We started doing OTC in 2021, and over the course of more than three years, we have expanded from a small store to multiple locations across various districts in Hong Kong. In our original business, 50%-60% was the exchange of fiat currency for stablecoins like USDT and USDC. However, after the regulations came into effect on August 1st, we promptly suspended this part of the business.

We decided to suspend out of respect for the law and based on considerations of the risks to company employees and users. This is because the new regulations clearly state: if stablecoins are provided, offered, quoted, or promoted during business activities, it falls under regulated activities, and once verified, it will face fines or even imprisonment.

In particular, the regulations emphasize the act of offering during the "business process", regardless of whether it is operated in the name of a company or an individual, it may violate the law. If employees trade on behalf of others, individuals may also face criminal liability risks. Therefore, we chose to suspend related business until we obtain a license.

So is the OTC business 'dead'?

RogerLi: No, we do not. We currently still offer services to exchange fiat currency for mainstream cryptocurrencies such as BTC, ETH, BNB, and SOL. The regulations do not currently restrict the exchange activities of these cryptocurrencies, as long as they are not stablecoins, and are not matched through exchanges or issued by issuers, they are not within the scope of the current stablecoin regulations.

The cryptocurrencies we have chosen are all mainstream coins that are open to retail investors on licensed exchanges in Hong Kong, which means they are relatively reliable in terms of compliance and liquidity. We have not suspended all operations, but rather focused our business within the currently permitted scope.

So does the future require a license to continue? What is the so-called VA Dealing license?

RogerLi: We understand that the entire industry will move towards licensing. The government is conducting public consultations on the so-called VA Dealing (Virtual Asset Trading Intermediary) license, which will end at the end of August.

The VA Dealing license can be understood as a compliance license exclusive to OTC, no longer the MSO (money exchange) license issued by customs in the past, but rather regulated uniformly by the Securities Regulatory Commission. This change reflects the government's desire to incorporate cryptocurrency trading into a regulatory framework similar to that of the securities market.

The application threshold for this license is not low. A registered capital of 5 million HKD is required, along with 3 million in liquid funds, plus a 12-month operational fund reserve. If a company's monthly operating cost is 2 million, then at least 20 million HKD needs to be prepared. In addition, the business model must be clear and transparent, and it must avoid holding customer assets, requiring back-to-back trading with a licensed exchange.

Will the VA Dealing license suddenly come into effect like the stablecoin regulations? Is there a transition period?

RogerLi: The current consultation document indicates that the VA Dealing license will not have a transitional period, nor will there be any arrangements for "deemed licensed." This means that once the legislation is passed, unlicensed individuals must immediately cease related activities.

Therefore, we are actively preparing to apply for the relevant licenses, while maintaining close communication with regulatory agencies, hoping to complete preparations before the policies are clearly implemented, thereby reducing the impact of business interruptions.

Do you think the regulation is too strict? For example, now even retail investors holding stablecoins have to undergo KYC.

RogerLi: We believe the regulatory direction is correct, and the key is the speed of implementation. The Hong Kong government's strategy is "strict first, then lenient." They currently believe that technological means are still insufficient to support the real-time monitoring required for AML (Anti-Money Laundering), so they choose to enforce KYC.

We support this idea. Over the past few years, we have actively required clients to do KYC, although there have been some client losses, it has brought about risk control and safety. We have even refused clients suspected of money laundering because we believe that long-term stable operations are more important.

Stablecoins are a crucial part of the virtual asset ecosystem, as they have both payment attributes and functions as a clearing and trading medium. To make them compliant and serve more real-world scenarios, they must accept regulation.

What do you think about the future of local compliant stablecoins in Hong Kong? Are you hoping for a Hong Kong dollar stablecoin, a US dollar stablecoin, or an offshore Chinese yuan?

RogerLi: We welcome any compliant stablecoins. Whether it is Hong Kong dollars, US dollars, or offshore Chinese yuan, as long as there are legitimate use cases and actual business support behind them, One Satoshi is willing to participate as a market maker in their secondary market.

We hope that they can connect to our existing trading network to achieve swaps between different currencies globally. This way, issuers can quickly access market liquidity, and we can also expand our service range.

What are the differences between offline and online business?

RogerLi: In Hong Kong, we only operate offline OTC stores. The online part is mainly for overseas business, such as providing fiat currency exchange services for some companies in Southeast Asia, and this part of the business is currently unaffected.

Our offline stores, in addition to trading functions, also undertake a lot of user education work. New users often have no understanding of cryptocurrencies, and we will teach them step by step how to open a wallet, how to do self-custody, and how to avoid scams. We also hold many free courses and invite speakers to conduct advanced courses.

What do you think about those OTC stores that are "still in operation"?

RogerLi: The regulations have only been implemented for a few days, and law enforcement is still a process. We do not comment on the compliance of other stores, but we are unwilling to bear such legal risks.

We will not break the law just because others do. We uphold the bottom line, not only for ourselves but also to protect our employees and clients.

What advice would you give to regulatory agencies?

RogerLi: We hope that the regulatory authorities can accelerate the legislative process. The industry is developing too quickly, and if regulation is slow, it is very likely that Hong Kong will miss the opportunity to establish an international virtual asset center.

Many Web3 companies are observing Hong Kong because the policy direction is clear, but the actual implementation speed is still somewhat slow. The faster the legislation, the more it can retain projects and funds, and it can also establish an orderly and safe market environment earlier.

Finally, if you were to give a piece of advice to users new to the crypto space, what would you say?

Roger: First, always learn to self-custody. Putting coins on an exchange is just "seeing" them rather than "owning" them. Once something goes wrong with the platform, the consequences are hard to bear.

Secondly, don't blindly chase trends. Many users like to buy meme coins or newly issued tokens, but lack the ability to assess their fundamental value. We hope to educate everyone through courses to learn how to research projects and understand on-chain logic, rather than being swayed by emotions.

The essence of Web3 is decentralization and user sovereignty; only by mastering knowledge and tools can one truly participate.

Interview Summary:

In this lengthy conversation with RogerLi, we see a locally compliant OTC company that is actively adapting to regulatory changes and exploring new paths for Hong Kong as a global Web3 hub. The choice of One Satoshi is a microcosm of many practitioners.

As Roger said: "Sticking to the bottom line is a manifestation of long-termism."