Hong Kong’s crypto industry is raising concerns over the planned adoption of the OECD’s Crypto-Asset Reporting Framework, warning that the rules could have unintended consequences if applied rigidly. While firms broadly support tax transparency, industry groups say the framework’s design may strain local operators.
In a recent submission to the Financial Services and the Treasury Bureau, the Hong Kong Securities and Futures Professionals Association highlighted risks tied to data collection, record retention, and legal exposure. Firms cautioned that collecting information on non-reportable clients could conflict with local privacy laws, while extended record-keeping requirements could place personal liability on former executives after a company dissolves.
Penalties are another focal point. Industry representatives warned that uncapped fines calculated on a per-account basis could escalate rapidly due to technical or reporting errors. Firms also flagged tight filing deadlines and limited automation options as operational challenges. Regulators are expected to finalize legislative amendments in 2026 as Hong Kong prepares for data exchange under CARF by 2028.
