2026-01-19 22:42:00

Hong Kong's crypto operators are raising serious concerns about CARF compliance requirements. Industry insiders warn that overly stringent implementation could trigger significant operational disruptions, create legal ambiguity, and expose firms to substantial financial penalties.

The core issues businesses are grappling with: unclear regulatory expectations lead to compliance paralysis, implementation costs strain smaller operations, and penalties appear disproportionate to violation severity.

To address these challenges, Hong Kong crypto firms are pushing for several practical safeguards. Privacy protections must balance regulatory needs with client confidentiality. Graduated penalty structures should distinguish between minor lapses and serious breaches. API-based reporting mechanisms could streamline compliance workflows. Equally important—grace periods give platforms time to rebuild systems without immediate enforcement action.

The message is clear: aggressive CARF rollout without industry coordination risks pushing legitimate operators offshore while creating loopholes for bad actors. Thoughtful implementation through stakeholder dialogue could achieve regulatory objectives while keeping Hong Kong competitive in the Asia-Pacific crypto ecosystem.

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GamefiEscapeArtist

· 4h ago

These guys in Hong Kong really can't hold on anymore. CARF is causing panic among people. To be honest, small exchanges are already deadlocked, and big players have long since moved to Singapore. With such high compliance costs, who would still dare to establish themselves in Hong Kong... If this continues, Hong Kong's crypto license will only be worth the paper it's printed on. Regulators should listen to industry insiders' opinions; a one-size-fits-all approach is not appropriate.

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CantAffordPancake

· 4h ago

Hong Kong's recent CARF crackdown is just too outrageous. Small platforms are being wiped out in one go. The rules weren't clearly explained, yet they expect full compliance immediately. Who can handle that... Fines and system changes at the same time—are regulators in such a rush? Without a buffer period, they'll push out a batch of legitimate players, which might give illegal money a chance to thrive. Instead of doing this, it's better to have proper discussions with the industry. Otherwise, Hong Kong's competitiveness might be lost in the end. Let's see how they coordinate the follow-up; otherwise, there will be another wave of escape.

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GateUser-00be86fc

· 4h ago

This is a typical "one-size-fits-all" regulation, small platforms really can't handle it. --- If Hong Kong really goes down this path, some teams will have to move to Singapore... --- Regarding compliance costs, the burden falls on the users in the end. --- The idea of a grace period is good; at least it gives people time to respond. --- Basically, regulators and industry players haven't sat down at the same table to discuss... --- Small exchanges must be feeling hopeless after hearing this news. --- Large companies can withstand it, but startups are just doomed; this regulatory design is really problematic. --- It seems CARF's original intention was good, but implementing this set of rules is a complete disaster. --- Why can't it be phased in like in Europe... --- Running to Seychelles has become the norm; the Hong Kong government’s way of trying to retain talent is really unique.

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CoconutWaterBoy

· 4h ago

Hong Kong is back with another move, CARF really driving people crazy. Small platforms are crying their eyes out, compliance costs are skyrocketing. Instead of a one-size-fits-all approach, it's better to have a proper discussion. Why push out law-abiding entities while black markets thrive? Honestly, the regulation hasn't figured out what it actually wants. The suggestion of a grace period is somewhat interesting. But the key is whether the Hong Kong government is willing to listen... Is it true? If this continues, how can Hong Kong stay competitive? Retail investors are again being played to death by these policies. The API solution is good, but I'm worried implementing it will be another story. It seems the conflicts of interest are too great, everyone is saying different things. Instead of fines, why not set reasonable standards? Taking it step by step is better than a complete crackdown.

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PrivateKeyParanoia

· 4h ago

CARF is really outrageous. Small platforms are directly driven to bankruptcy, and big players still run away.

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