Hong Kong Securities Association Advocates for Relaxed Rules in Crypto Asset Reporting Framework

According to PANews, the Hong Kong Securities and Futures Professionals Association has submitted recommendations to the government, urging a relaxation of certain rules in the implementation of the OECD's Crypto Asset Reporting Framework (CARF). The association supports the introduction of CARF and the revision of the Common Reporting Standard, which includes mandatory registration for crypto service providers and an expanded scope for transaction reporting. However, the association suggests reducing requirements for institutions with no reporting activities, enhancing personal data protection, and allowing companies to transfer record-keeping responsibilities to regulated third parties when ceasing operations. The association warns that the current proposal's lack of a cap on account-based penalties and personal liability for directors could increase compliance risks. It recommends establishing clear penalty limits and providing safeguards for companies acting in good faith. Hong Kong is among the 76 markets committed to implementing CARF and aims to complete the first data exchange by 2028.