Hong Kong looks to become global OTC crypto center with new EU style reporting

Hong Kong’s monetary regulators have introduced plans to harmonize town’s over-the-counter (OTC) derivatives reporting regime, together with crypto derivatives, with worldwide requirements. The Hong Kong Financial Authority (HKMA) and the Securities and Futures Fee (SFC) have launched a joint session conclusion outlining modifications that may carry town’s rules according to European and international practices.

The brand new guidelines, which come into impact on September 29, 2025, will mandate using Distinctive Transaction Identifiers (UTI), Distinctive Product Identifiers (UPI) and Vital Information Parts (CDE) for OTC derivatives reporting. These modifications are meant to facilitate the worldwide standardization and harmonization of information components reported within the international reporting regimes for OTC derivatives.

Regulators have significantly addressed the rising space of ​​digital asset derivatives. Because the HKMA and SFC reported:

“On condition that the Digital Token Identifier (DTI) has been proposed as an allowable reportable worth within the upcoming session of model 4 of the CDE Technical Steerage, we’ll embody using DTI in our reporting necessities.”

The transfer brings Hong Kong according to European efforts to standardize the identification of digital belongings in monetary reporting.

The regulators have additionally streamlined the variety of necessary knowledge fields to be “inside the vary of these within the EU, US and different APAC jurisdictions”, hanging a stability between complete reporting and operational effectivity for market individuals.

As well as, Hong Kong will undertake the ISO 20022 XML messaging commonplace for OTC derivatives reporting, a transfer that has acquired widespread help from trade stakeholders. This approval will guarantee consistency with international reporting practices and facilitate cross-border knowledge sharing and evaluation.

These modifications symbolize a notable step in Hong Kong’s efforts to take care of its standing as a number one worldwide monetary heart whereas aligning rules with main cryptocurrency and digital asset derivatives markets.