Hong Kong’s financial regulators, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have announced the adoption of new reporting standards for cryptocurrency companies, aligning with the European Securities and Markets Authority (ESMA) requirements. This initiative aims to enhance the transparency and efficiency of over-the-counter (OTC) crypto derivatives trading in the region.
Set to take effect on September 29, 2025, the new regulations will require cryptocurrency firms to implement unique product identifiers (UPI) and unique transaction identifiers (UTI) in their reporting processes. These measures are designed to standardize data reporting across the industry, facilitating better oversight and compliance with international best practices.
In a joint statement, the HKMA and SFC emphasized that these changes are part of a broader effort to harmonize national legislation with leading global standards. The introduction of these identifiers is expected to streamline reporting processes and improve data accuracy, benefiting both regulators and market participants.
Additionally, Hong Kong will adopt the ISO 20022 XML message standard for OTC derivatives reporting. This widely supported standard is anticipated to enhance cross-border data sharing and analysis, positioning Hong Kong as a competitive player in the global crypto derivatives market.
The regulators have also acknowledged the growing importance of digital asset derivatives, indicating that they will accommodate the use of Digital Token Identifiers (DTI) in their reporting requirements. This move aligns with ongoing efforts in Europe to standardize digital asset identification within financial reporting frameworks.
As Hong Kong seeks to bolster its status as a leading international financial centre, these regulatory updates reflect a commitment to maintaining high standards of transparency and accountability within the rapidly evolving cryptocurrency landscape. The alignment with European standards not only enhances regulatory credibility but also aims to attract more investors and businesses to the region’s burgeoning crypto market.
Industry stakeholders have welcomed these developments, viewing them as a significant step towards fostering a more robust and compliant environment for cryptocurrency operations in Hong Kong.
