Hong Kong Lobby Seeks Softer CARF, CRS Penalty Rules
A Hong Kong industry group is asking the government to ease proposed penalties under the OECD's CARF and CRS crypto reporting rules.Summary
The Hong Kong Securities & Futures Professionals Association (HKSFPA) has urged the Hong Kong government to soften certain aspects of the planned implementation of the OECD's Crypto Asset Reporting Framework (CARF) and related Common Reporting Standard (CRS) amendments, citing potential operational and liability risks for local institutions. While the HKSFPA broadly supports the mandatory registration and expanded transaction reporting aspects of the proposals, it specifically called for lighter requirements for entities with no reporting activity, stronger personal data protections, and the ability to transfer record-keeping to regulated third parties upon cessation of operations. Crucially, the group warned against uncapped per-account penalties and personal liability for directors, advocating instead for clear penalty caps and safeguards for companies acting in good faith. This lobbying effort occurs as Hong Kong strives to become a regulated crypto hub, adhering to existing licensing standards for exchanges while preparing to implement CARF, a new standard for cross-border crypto tax information exchange.
(Source：Cointelegraph)