The Hong Kong Securities & Futures Professionals Association has urged the government to ease parts of its planned rollout of the OECD’s crypto tax reporting standards.
The group said the Crypto Asset Reporting Framework and related Common Reporting Standard amendments could expose local institutions to operational strain and legal risk.
CARF introduces automatic cross-border tax information exchange for crypto asset users, while CRS governs similar reporting for traditional financial accounts.
Hong Kong is among 76 markets committed to implementing CARF and is included in the first group of jurisdictions targeting data exchanges by 2028.
The association said it supports tougher tax transparency in principle, including mandatory registration of crypto service providers and expanded transaction reporting.
It called for lighter treatment of firms with no reportable activity and stronger safeguards around personal data protection.
The group also urged authorities to allow record-keeping responsibilities to be transferred to regulated third parties when firms cease operations.
Concerns were raised over uncapped per-account penalties and potential personal liability for directors under the proposed rules.
The association recommended clear penalty caps and protections for companies that comply in good faith.
The debate comes as Hong Kong continues efforts to position itself as a regulated crypto hub.
The city’s licensing regime requires exchanges to meet strict standards on customer checks, custody, market abuse and anti-money laundering controls.
As of early 2026, eleven crypto trading platforms have been authorised to operate in Hong Kong under the current framework.
Globally, CARF adoption is accelerating, with dozens of jurisdictions preparing to begin cross-border crypto tax data exchanges in 2027.