Hong Kong’s crypto industry is pushing back against a new global reporting plan, and the tension is starting to show.
Several crypto firms in the city are raising concerns about the OECD’s Crypto-Asset Reporting Framework, also known as CARF. They argue that moving too quickly toward compliance could create serious legal and operational problems, especially since many parts of the framework are still unclear.
CARF is designed to require crypto platforms to share user identity and transaction data across borders, essentially creating a worldwide reporting system for crypto activity. Although the rollout isn’t expected until 2028, companies in Hong Kong say the rules are still vague, inconsistent, and may conflict with local privacy and data protection laws.
The main worry is that exchanges and service providers could end up stuck between following international rules and breaking local ones. For a major crypto hub like Hong Kong, that’s a risky position to be in.
As governments around the world push for tighter control over the industry, crypto centers are starting to push back. Now the pressure is on regulators to clarify the rules, or risk driving innovation to other regions.
Whether CARF becomes the standard for global crypto regulation or sparks a wider backlash is still an open question, and the debate is only just getting started.
Follow yousuf khan2310 for more latest updates
#Crypto #Regulation #Blockchain #BTC #Write2Earn $BTC