Alisa Davidson
Revealed: January 19, 2026 at 7:00 am Up to date: January 20, 2026 at 4:49 am
Edited and fact-checked:
January 19, 2026 at 7:00 am
In Transient
Hong Kong SFPA helps shopper knowledge assortment, streamlined registration, automated reporting, and a balanced penalty framework to make sure sensible compliance with CARF and CRS whereas defending privateness and lowering operational burdens.
Hong Kong Securities and Futures Professionals Affiliation (SFPA) submitted an in depth response to the federal government’s session on the implementation of the Crypto-Asset Reporting Framework (CARF) and proposed amendments to the Frequent Reporting Commonplace (CRS) in Hong Kong, providing business insights and proposals geared toward balancing regulatory compliance, operational practicality, and knowledge privateness.
In its response, the SFPA emphasised broad help for a “wider method” to shopper knowledge assortment. Somewhat than segregating shoppers into “reportable” and “non-reportable” classes at onboarding, the affiliation advocates amassing info from all shoppers to cut back ongoing monitoring burdens and keep away from administrative friction if shoppers transfer between jurisdictions. The affiliation additionally careworn the significance of specific authorized protections underneath Hong Kong’s Private Knowledge (Privateness) Ordinance when amassing info on non-reportable individuals for anticipated future compliance.
On record-keeping, the SFPA largely agrees with the proposed six-year retention interval however raised issues about obligations on people following the dissolution of entities. It advised that designated third-party custodians, comparable to liquidators or licensed company service suppliers, ought to assume duty for sustaining data, as an alternative of imposing indefinite private legal responsibility on former administrators or officers.
Streamlined Registration, Automated Reporting, And Graduated Penalties For Hong Kong Establishments
The affiliation additionally endorsed necessary registration for all Reporting Crypto-Asset Service Suppliers (RCASPs) and Reporting Monetary Establishments (RFIs) whereas recommending simplified processes for entities anticipated to file “Nil Returns,” lowering administrative overhead with out compromising regulatory oversight. The SFPA highlighted the necessity for a graduated penalty framework, cautioning in opposition to “per account” fines for minor technical errors and suggesting caps and affordable defenses for unintentional errors.
The session response additionally addressed technical and operational points. The SFPA known as for digital submitting through API integration along with XML uploads, significantly for big establishments, to automate reporting and cut back operational dangers. It highlighted that self-developed software program and IRD-provided knowledge preparation instruments needs to be strong and user-friendly, permitting smaller establishments to conform successfully.
Moreover, the SFPA supported the default remedy for reporting gross proceeds underneath each CRS and CARF, noting that non-obligatory remedy would introduce pointless reconciliation complexity. Aligning with international requirements would simplify reporting for Hong Kong-based establishments working throughout a number of jurisdictions.
Concerning the improved penalty framework for CRS, the affiliation really useful a “gentle touchdown” interval throughout the preliminary implementation, permitting warning letters for first-time administrative oversights. It additionally urged the codification of a “affordable excuse” protection when RFIs relied on legitimate self-certifications and performed customary due diligence.
Disclaimer
In step with the Belief Mission tips, please word that the knowledge supplied on this web page will not be supposed to be and shouldn’t be interpreted as authorized, tax, funding, monetary, or every other type of recommendation. You will need to solely make investments what you’ll be able to afford to lose and to hunt unbiased monetary recommendation in case you have any doubts. For additional info, we advise referring to the phrases and situations in addition to the assistance and help pages supplied by the issuer or advertiser. MetaversePost is dedicated to correct, unbiased reporting, however market situations are topic to alter with out discover.
About The Creator
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising tendencies and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles
Alisa, a devoted journalist on the MPost, focuses on cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising tendencies and applied sciences, she delivers complete protection to tell and interact readers within the ever-evolving panorama of digital finance.
Extra articles
