Hong Kong Regulators to Adopt ESMA's Crypto OTC Derivatives Reporting Standards

Hong Kong is set to align its regulatory framework with global standards for crypto derivatives. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have announced their intention to adopt the reporting requirements established by the European Securities and Markets Authority (ESMA) for over-the-counter (OTC) crypto derivatives.

This move aims to ensure that Hong Kong's regulatory landscape remains competitive and in line with international best practices. By adopting ESMA's standards, Hong Kong will provide greater clarity and transparency for investors and market participants operating in the crypto derivatives space.

Key points from the announcement:

• Adoption of ESMA's Reporting Standards: The HKMA and SFC will implement ESMA's reporting requirements for OTC crypto derivatives.
• Digital Token Identifier (DTI): Hong Kong will adopt the DTI as a core reference point for crypto asset service providers, similar to its use in Europe.
• Unique Product Identifier (UPI): The regulators plan to introduce the UPI for reporting transactions in the near future.
• Timeline: The new reporting requirements are expected to be implemented by September 29, 2025.

This announcement comes on the heels of the launch of the second phase of the Project e-HKD+ pilot study, which focuses on the settlement of tokenized assets, programmability, and offline payments for the digital Hong Kong dollar (e-HKD). These developments highlight Hong Kong's commitment to fostering innovation and regulation in the digital asset space.

September 2024, Cryptoniteuae