Hong Kong Securities and Futures Professionals Association (HKSFPA) has called for easing rules under CARF (Crypto Asset Reporting Framework), the OECD’s crypto reporting standard, Cointelegraph reported on Jan. 19 local time.

HKSFPA urged the Hong Kong government to ease reporting obligations when implementing CARF and to strengthen personal data protection.

CARF is an international standard for the automatic exchange of crypto users’ tax information. Hong Kong is one of 76 countries set to adopt CARF and plans its first data exchange by 2028. The association said CARF is necessary but argued that obligations should be reduced for companies with no reporting activity, personal data protection should be strengthened and firms should be allowed to transfer record-keeping to a regulated third party if they close.

It said unlimited per-account fines and directors’ personal liability could raise operational risks for companies, and stressed the need for a cap on fines and corporate safeguards.

Hong Kong is operating a regulatory framework that tightens standards for know-your-customer checks at crypto exchanges, asset protection, market abuse prevention and anti-money laundering rules.

CARF is reshaping global crypto tax reporting, and 48 countries including the UK and the European Union are set to begin their first data exchange from 2027.