Hong Kong OTC Crypto Derivatives Market to Align with EU Standards
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Hong Kong’s financial regulators are now set to adopt global reporting standards for over-the-counter (OTC) crypto derivatives, similar to the European Union’s framework.
On September 26, 2024, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) announced their plan to update the region’s OTC derivatives reporting regime.
The new reporting requirements will incorporate Digital Token Identifiers (DTIs) and other key global identifiers, which align with the European Securities and Markets Authority (ESMA) standards.
The updates are expected to take effect by September 29, 2025.
The decision to reform Hong Kong’s reporting standards for OTC crypto derivatives follows a March 2024 consultation led by the HKMA and the SFC.
The consultation paper received input from financial institutions, industry bodies, and stakeholders who emphasized the importance of integrating international standards to ensure seamless cross-border transactions and compliance.
Notably, one major issue raised by Hong Kong stakeholders was the classification of crypto OTC derivatives, which cannot be easily categorized under the existing five traditional asset classes — interest rates, foreign exchange, credit, commodities, and equities.
Stakeholders called for the adoption of Digital Token Identifiers (DTIs), which ESMA had already integrated into European reporting standards in October 2023.
The HKMA and SFC responded by confirming their intent to adopt DTIs for crypto-asset underliers in the OTC derivatives market.
The agencies
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