Hong Kong Professionals Urge Softer Crypto Reporting in New Regulatory Plans

The Hong Kong government is urged to reconsider aspects of the OECD’s Crypto Asset Reporting Framework (CARF) by the Hong Kong Securities & Futures Professionals Association (HKSFPA).

Key Points:

The HKSFPA suggests slowing down the implementation due to potential operational and liability risks for local institutions.
The association supports mandatory registration of crypto service providers but asks for lighter requirements, especially for those with no reporting activity.
CARF aims to establish a standard for cross-border tax information exchange for crypto assets.
Hong Kong plans to adopt CARF by December 2025, with full implementation slated for 2028.
Hong Kong is among 76 markets committed to implementing CARF and one of 27 jurisdictions for first data exchanges by 2028.

Regulatory Developments:

Hong Kong intends to expand its crypto sector in 2026 through new licensing regimes for Virtual Asset dealers and custodians.
The proposed rules will integrate OTC desks, brokers, and asset custodians into the existing regulatory framework.
The Hong Kong Insurance Authority announced plans to allow investment in digital assets, including cryptocurrency, by insurance providers starting December 2025.