By September 29, 2025, new regulations are set to be implemented for over-the-counter (OTC) cryptocurrency derivatives, which include updates to the current framework and the introduction of unique product identifiers (UPI) and transaction identifiers (UTI). These measures are aimed at improving the reporting practices of cryptocurrency companies and ensuring greater transparency in their operations.

The initiative for these changes came from the ESMA, which in 2023 introduced new reporting standards for virtual asset service providers in Europe. These rules have already become the foundation for crypto companies, which are now required to report their operations with greater accuracy.

Hong Kong Moving Towards Harmonization with International Standards

Hong Kong regulators, such as the HKMA and SFC, are actively adopting international standards to harmonize local laws with best practices. This will enhance user protection and increase trust in crypto assets within the region. According to regulators, the new rules will align local laws with global standards, making the cryptocurrency market safer and more transparent.

Tighter Stablecoin Regulations

Earlier, Hong Kong authorities announced plans to tighten stablecoin regulations by prohibiting their offering to retail investors without financial regulator licensing. This initiative aims to mitigate risks and protect investors from potentially unethical practices by stablecoin issuers. It is expected that the new rules will help prevent the use of stablecoins in illegal activities and improve control over their issuance.

Hong Kong continues to actively adapt its regulatory environment to ensure compliance with international norms and strengthen its position as one of the key cryptocurrency hubs in Asia. These steps are aimed at creating a reliable and secure ecosystem for cryptocurrency users and companies operating in the field.

For more information, visit ESMA and HKMA.