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Hong Kong Financial Association Urges Adjustments to CARF Implementation

The Securities and Futures Professionals Association backs OECD-aligned registration rules for RCASP and RFI, while seeking simplified compliance and non-criminal penalties under CARF and CRS reforms.

Summary

The Hong Kong Securities and Futures Professionals Association announced support for mandatory registration of RCASP and RFI under the forthcoming CARF and CRS framework to meet OECD standards. The group recommended simplified reporting procedures for zero-report institutions, replacing criminal charges with administrative fines, and enabling API-based data submission. These measures aim to streamline compliance without reducing regulatory alignment, as Hong Kong prepares for its CARF rollout.

Terms & Concepts
  • CARF (Crypto-Asset Reporting Framework): An international standard for the automatic exchange of information on crypto-asset transactions for tax compliance purposes.
  • CRS (Common Reporting Standard): A global standard for the automatic exchange of financial account information between tax authorities to combat tax evasion.
  • RCASP: Reporting Crypto-Asset Service Provider, an entity obliged to disclose crypto-asset transactions under CARF.