Hong Kong's financial regulators are aligning their reporting requirements for crypto over-the-counter (OTC) derivatives with European standards. On September 26, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) announced plans to implement Digital Token Identifiers (DTIs) for identifying crypto assets in OTC derivatives reporting, starting September 29, 2025.
This decision follows a consultation earlier in 2024, where Hong Kong stakeholders highlighted challenges in classifying OTC derivatives into traditional asset classes. The move aims to provide clearer identification of crypto assets, mirroring the European Securities and Markets Authority's (ESMA) use of DTIs, which was introduced in October 2023.
To aid in the transition, reporting entities can continue using existing identifiers like Unique Swap Identifier (USI) and Unique Trade ID (TID) until the new system takes full effect. Hong Kong regulators also plan cross-border cooperation with financial authorities from Singapore, Australia, and Japan for a coordinated implementation of DTIs in the Asia-Pacific region.
This regulatory shift comes as Hong Kong's Customs and Excise Department and SFC consider a new licensing framework for OTC crypto services and cryptocurrency custody regulations.
