Hong Kong Securities and Futures Professional Association: Supports the implementation of mandatory registration for CARF, suggests simplifying zero reporting and introducing an API automation reporting mechanism

The Hong Kong Securities and Futures Professionals Association submitted a position paper on the implementation of the Crypto Asset Reporting Framework (CARF) and CRS revisions in Hong Kong, supporting mandatory registration for RCASP and RFI to align with OECD standards and maintain Hong Kong's status as a financial center. The association recommends providing a simplified or lightweight registration and reporting mechanism for "zero reporting" entities to reduce compliance costs, while also supporting an administrative penalty mechanism to replace criminal liability.

In addition, the association supports the "dual reporting" default option for CARF and CRS to reduce system complexity and the risk of underreporting, and calls for the provision of an API reporting interface to meet the automated compliance needs of large crypto institutions.