Hong Kong Adopts European Crypto Reporting Standards

Hong Kong's financial regulators, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC), have announced plans to align their reporting standards for cryptocurrency companies with those set by the European Securities and Markets Authority (ESMA). 

This initiative aims to enhance the regulatory framework for over-the-counter (OTC) crypto derivatives in Hong Kong.

On September 26, the HKMA and SFC revealed that they would implement new reporting requirements by September 29, 2025. These requirements will include the mandatory use of Unique Product Identifiers (UPI) and Unique Transaction Identifiers (UTI) to streamline reporting processes. The decision follows a consultation process initiated in March 2024, during which stakeholders expressed difficulties in categorizing crypto OTC derivatives within traditional asset classes.

The introduction of Digital Token Identifiers (DTI) is also part of this regulatory overhaul, which aims to provide clear identification of crypto-asset underliers. This move mirrors ESMA's recent implementation of DTIs, which serve as a core reference point for crypto asset service providers across Europe.

The HKMA and SFC emphasized that these measures are designed to harmonize local legislation with international best practices, thereby fostering a safer and more competitive environment for investors. As Hong Kong continues to develop its regulatory landscape for digital assets, these changes mark a significant step towards aligning with global standards in the rapidly evolving crypto market.