Hong Kong Aims to Become Global Hub for OTC Digital Asset Reporting with EU-Inspired Standards

Hong Kong’s financial authorities are moving to align the city’s over-the-counter (OTC) derivatives reporting system, including digital asset derivatives, with international standards. The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have jointly announced plans to overhaul current regulations, bringing them in line with European Union and global best practices.

The new rules, set to be enforced starting September 29, 2025, will require the use of Unique Transaction Identifiers (UTI), Unique Product Identifiers (UPI), and Critical Data Elements (CDE) for OTC derivatives reporting. These updates aim to standardize and streamline data reporting for financial markets worldwide.

A key aspect of the reform addresses the rapidly growing digital asset derivatives market. According to the HKMA and SFC, the implementation of a Digital Token Identifier (DTI) is part of the upcoming changes, signaling Hong Kong's commitment to incorporating emerging technologies into its regulatory framework.

“Given that the Digital Token Identifier (DTI) has been proposed as a reportable value in version 4 of the CDE Technical Guidance, we will integrate its use into our reporting standards,” the regulators stated.

The move not only aligns Hong Kong with Europe’s approach to digital asset reporting but also introduces a more efficient system. The number of required data fields will now be comparable to those mandated in the EU, the US, and other major Asia-Pacific jurisdictions, offering a balance between comprehensive data collection and reduced operational complexity for financial institutions.

Additionally, the adoption of the ISO 20022 XML message format for reporting has garnered strong support from industry stakeholders. This format is widely used in international financial transactions, and its integration will enhance cross-border data sharing and harmonization.

These regulatory changes reinforce Hong Kong’s position as a major player in global financial markets and demonstrate its proactive stance in adopting global standards for both traditional and digital assets.

You can our detailed primes about crypto regulations in different countries here.