Hong Kong regulators will align their crypto OTC derivatives reporting with ESMA’s standards, including utilizing Digital Token Identifiers.
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Two high-level Hong Kong monetary regulators occupy co-launched their intent to undertake reporting necessities space by the European Securities and Markets Authority (ESMA) for crypto over-the-counter (OTC) derivatives.
On Sept. 26, the Hong Kong Financial Authority (HKMA) and the Securities and Futures Price (SFC) shared a conception to speak their OTC reporting necessities up to global standards after studying responses to a consultation paper from March 2024.
According to Hong Kong stakeholders and merchants, crypto OTC derivatives investments can’t be labeled under the present frail five asset classes: ardour rates, international alternate, credit, commodities and equities.
Conserving up global competition with European standards
Some Hong Kong stakeholders instructed utilizing Digital Token Identifiers (DTIs) “to unambiguously title crypto-asset underliers for OTC derivatives.”
In response, the HKMA and SFC famed that ESMA applied DTIs in reporting in October 2023. DTIs on the moment serves as the core reference point for crypto asset service providers across Europe.
Citing the necessity for the Original Product Identifier (UPI) in reporting transactions, the Hong Kong regulators published plans to replicate the mandate of their jurisdiction within the diagram future:
“Equipped that the Digital Token Identifier has been included within the records arena ‘Underlier ID (OTHER)’ as an allowable price within the upcoming consultation of model 4 of the CDE Technical Guidance, we are able to accommodate utilizing DTI in our reporting necessities.”
On the assorted hand, the authorities will continue to video display the outcomes of mandates placed by other jurisdictions and undertake a identical regime as deemed mandatory.
Recent reporting necessities in Hong Kong anticipated by 2025
Hong Kong authorities instructed implementing the unusual reporting necessities by Sept. 29, 2025.
Connected: Hong Kong launches generative AI Sandbox for finance sector
Hong Kong these days marked a unusual milestone in growing its in-house central bank digital currency (CBDC), the digital Hong Kong greenback (e-HKD).
On Sept. 23, HKMA launched the commence of the second allotment of the e-HKD pilot survey, Venture e-HKD+.
Provide: HKMA
Venture e-HKD+ will specialize in three issues: settlement of tokenized resources, programmability and offline funds. The unusual allotment may well perhaps occupy its gain sandbox and final a pair of year.
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