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Hong Kong aims to establish itself as a worldwide OTC cryptocurrency hub with new EU-style reporting measures.
Hong Kong’s financial authorities have unveiled intentions to align the city’s over-the-counter (OTC) derivatives reporting framework, including those related to cryptocurrencies, with international benchmarks. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) published a joint consultation conclusion detailing modifications that will synchronize the city’s regulations with European and global standards.
The forthcoming regulations, scheduled to be implemented on September 29, 2025, will require the utilization of Unique Transaction Identifiers (UTI), Unique Product Identifiers (UPI), and Critical Data Elements (CDE) for OTC derivatives reporting. These adjustments are designed to promote international standardization and harmonization of data elements reported across worldwide OTC derivatives reporting frameworks.
Importantly, the regulators have acknowledged the developing sector of digital asset derivatives. As reported by the HKMA and SFC,
“Given that the Digital Token Identifier (DTI) has been proposed as an allowable reportable value in the upcoming consultation of version 4 of the CDE Technical Guidance, we will accommodate the use of DTI in our reporting requirements.”
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This initiative aligns Hong Kong with European endeavors to standardize digital asset identification in financial reporting.
The regulators have also reduced the number of required data fields to be “in the range of that in the EU, the US, and other APAC jurisdictions,” achieving a balance between thorough reporting and operational efficiency for market participants.
Additionally, Hong Kong will implement the ISO 20022 XML message standard for OTC derivatives reporting, a decision that has garnered widespread support from industry stakeholders. This implementation will ensure consistency with global reporting practices and enhance cross-border data sharing and analysis.
These modifications signify a significant advancement in Hong Kong’s efforts to uphold its position as a prominent international financial hub while ensuring regulatory alignment with major crypto and digital asset derivatives markets.
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