HKSFPA Advocates for Amendments to Hong Kong's CARF Digital Asset Regulations
The Hong Kong Securities & Futures Professionals Association (HKSFPA) has proposed amendments to the Crypto-Asset Reporting Framework (CARF) during a public consultation, advocating for independent custodians to manage record-keeping for dissolved entities and suggesting caps on fines for technical errors. The association supports the six-year record retention period but calls for a simplified registration process for low-activity entities and enhanced compliance through electronic filing. The consultation period will end on February 6, 2026, with the first CARF data exchange anticipated in September 2028.
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The Hong Kong Securities & Futures Professionals Association (HKSFPA) has submitted recommendations to modify aspects of the Crypto-Asset Reporting Framework (CARF) during a public consultation initiated on December 9, 2025. The association supports the six-year record retention period but raises concerns about the obligations imposed on directors of dissolved entities, suggesting that record-keeping should be managed by independent custodians.
HKSFPA argues against unlimited per-account fines, advocating for explicit caps and a 'reasonable excuse' defense to mitigate penalties due to technical errors. Additionally, it recommends a simplified registration process for low-activity entities and emphasizes the need for electronic filing through API integrations to enhance compliance efficiency. The consultation will close on February 6, 2026, with the first CARF data exchange expected to occur in September 2028.
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