Hong Kong's HKSFPA Urges Softer Crypto Reporting Rules

Crypto News Regulation

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 19, 2026

Key Takeaways

The HKSFPA urged Hong Kong’s government to adjust how it adopts OECD’s new crypto tax reporting rules;
The group supports CARF and CRS updates, but warns they could raise compliance and legal risks for local firms;
It called for fairer rules, including lighter duties for inactive firms, stronger privacy protections, and limits on penalties.

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Hong Kong's HKSFPA Urges Softer Crypto Reporting Rules

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The Hong Kong Securities & Futures Professionals Association (HKSFPA) has asked the government to adjust parts of its plan to apply new global crypto reporting standards from the OECD.

These standards include the Crypto Asset Reporting Framework (CARF) and updates to the Common Reporting Standard (CRS).

CARF is meant to help countries automatically share tax data about crypto users, while CRS already covers traditional bank and investment accounts.

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Hong Kong has agreed to follow these international rules and is among 76 markets that plan to adopt CARF. It is also one of 27 places expected to begin sharing information by 2028.

The HKSFPA said it supports the general idea behind these regulations, such as requiring crypto service providers to register and report transactions. But it also warned that the proposed approach could create extra work, compliance costs, and legal risks for local companies.

The group suggested that businesses with no reportable data should face lighter requirements. It also called for stronger privacy rules to protect users’ personal data and for companies that close down to be allowed to transfer record-keeping duties to licensed third parties.

Another concern raised by the HKSFPA is that unlimited penalties per account and personal responsibility for company directors could raise unfair liability risks. To prevent this, the group proposed setting clear limits on fines and offering protections to firms that act responsibly and follow the rules.

Recently, Hong Kong’s Insurance Authority has proposed allowing insurers to invest in crypto and infrastructure. What does the proposal cover? Read the full story.