Hong Kong is set to align its crypto over-the-counter (OTC) derivatives reporting standards with European regulations, specifically the guidelines established by the European Securities and Markets Authority (ESMA).

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) announced on 26 September that Digital Token Identifiers (DTI) would become mandatory for OTC derivatives reporting from 29 September 2025. This decision follows responses to a consultation paper released in March 2024, where stakeholders recommended DTIs to clearly identify crypto-asset underliers in the reporting process.

Addressing Classification Challenges

Hong Kong stakeholders highlighted challenges in categorising OTC crypto derivatives within the traditional asset classes of interest rates, foreign exchange, credit, commodities, and equities. In response, the HKMA and SFC are introducing reporting requirements that accommodate DTIs for crypto assets, simplifying classification and identification.

Global Coordination

The HKMA and SFC also hinted at broader collaboration with financial regulators from Singapore, Australia, and Japan to ensure a coordinated implementation of Unique Trade Identifiers (UTI) across the Asia-Pacific region. The plan aims to ensure a smooth transition to UTI, although entities may continue using existing identifiers, such as Unique Swap Identifier (USI) and Unique Trade ID (TID), until the new system takes effect.

Meanwhile, Hong Kong Customs and Excise Department is exploring a new licensing regulation for OTC crypto services, in collaboration with the SFC, to further regulate the market.

This marks another significant step for Hong Kong in harmonising its crypto regulations with global standards, ensuring greater transparency and security for investors and service providers alike.