September 27 news, according to Cointelegraph, on September 26, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) shared a plan to raise their OTC reporting requirements to global standards after studying the responses to a consultation document in March 2024. They intend to adopt the reporting requirements set by the European Securities and Markets Authority (ESMA) for crypto over-the-counter (OTC) derivatives. Hong Kong stakeholders and investors said that crypto OTC derivatives investments cannot be classified into the existing five traditional asset classes - interest rates, foreign exchange, credit, commodities and stocks. Some Hong Kong stakeholders suggested using digital token identifiers (DTIs) "to clearly identify the underlying crypto assets in OTC derivatives." In response, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) pointed out that the European Securities and Markets Authority (ESMA) has included DTI in the reporting system in October 2023. Currently, DTI has become a core reference point for crypto asset service providers in Europe. Referring to the need for a unique product identifier (UPI) in transaction reports, the Hong Kong regulator revealed plans to implement similar requirements in its jurisdiction in the near future: "Given that digital token identifiers are included as allowed values in the data field "Base ID (Other)" in the upcoming CDE Technical Guidance Version 4 consultation, we will adapt the use of DTI in the reporting requirements." However, the authorities will continue to monitor the results of orders issued by other jurisdictions and adopt similar systems if necessary. The Hong Kong authorities propose to implement the new reporting requirements by September 29, 2025.
