Hong Kong advances crypto asset reporting framework, associations recommend streamlining compliance processes

[Crypto World] Hong Kong Financial Regulators Take New Actions. The Hong Kong Securities and Futures Professionals Association recently submitted comments to the authorities regarding the Crypto Asset Reporting Framework (CARF) and CRS revisions. The association’s stance is very clear: support mandatory registration for RCASP and RFI, which aligns with OECD standards and reinforces Hong Kong’s position as an international financial center.

However, the association also considers the pressures on small and medium-sized institutions. For those “zero declaration” entities, the association recommends introducing simplified or lightweight registration and reporting mechanisms, which can significantly reduce compliance costs for businesses. Regarding penalties, the association favors administrative fines over criminal prosecution, a approach that better meets industry needs.

Of particular interest is the technical solution. The association supports a “dual declaration” default model for CARF and CRS, which can reduce system complexity and minimize the risk of underreporting. Additionally, the association specifically urges regulators to provide API reporting interfaces to facilitate automated compliance for large crypto institutions, which is of great significance for improving overall industry efficiency.