Regulations are often seen as an obstacle to crypto innovation. However, Hong Kong, in search of hegemony in the crypto derivatives market, has chosen another path. Drawing inspiration from European standards while shaping them to its advantage, the city seeks to redefine the rules of the game. With a stated ambition to become the global hub for OTC (over-the-counter) crypto-derivatives, Hong Kong seems ready to reverse European models to take advantage of them. But is this strategy simply an alignment or a reinvention of existing rules?
A European model reinterpreted for crypto domination
Derivatives regulation is a complex area, particularly for digital assets. Europe has long been a pioneer in the regulation of financial derivatives.
Hong Kong, although often perceived as a daring territory, this time seems to want to take advantage of this European expertise. But make no mistake, this is not a simple carbon copy.
By adopting international standards like Unique Transaction Identifiers (UTI) and Unique Product Identifiers (UPI), Hong Kong is doing much more than complying with international requirements.
The city ensures global recognition while adapting the rules flexibly. Regulation, far from being a constraint, becomes here a strategic lever to attract market players.
What is bold is the introduction of digital token identifiers (DTI), directly inspired by European proposals, but adapted to the Asian ecosystem.
Hong Kong doesn't just adopt the rules: it refines them, adjusts them, and sometimes, reinvents them to better match its vision of the crypto market.
The battle of the regulators: Hong Kong enters the arena
If Europe has opened the way to rigorous regulation, Hong Kong seems ready to go further. By adopting the ISO 20022 standard for financial reporting of OTC derivatives, Hong Kong is not only seeking harmonization, but aims to become the gold standard in Asia.
This standard, widely supported by industry stakeholders, promises greater consistency with global reporting practices, thereby facilitating cross-border trade.
But it's not just a technical question. Behind this movement, Hong Kong positions its regulators as true arbiters of the global market.
By simplifying the mandatory data fields, the city shows a desire to make reporting more accessible, while maintaining operational rigor comparable to that of the United States and Europe.
This compromise between efficiency and compliance is not the result of chance, but of a deliberate strategy to establish itself against other major financial centers.
The end goal is clear: Hong Kong does not only want to be a follower of European models, but to become a key player in the regulation of crypto-derivatives. By shaping the rules of the game to its advantage, the city hopes to attract a new wave of investors ready to operate in a secure but flexible framework.
Hong Kong, future epicenter of crypto-derivatives?
While European regulation has often been criticized for its complexity, Hong Kong seeks to simplify its application while preserving its credibility.
The new rules planned for 2025, with the introduction of unique transaction and product identifiers, demonstrate a desire for standardization, but also for differentiation.
Hong Kong is not just copying: it is exploiting loopholes, maximizing opportunities and establishing itself as a leading regulatory player.
The choice of strict but flexible regulations should not be seen as simple compliance with international standards. Hong Kong adopts, improves and sometimes twists these rules to adapt them to its own ambitions.
By capitalizing on European credibility, the city is forging its own regulatory identity, at the crossroads of worlds between innovation and conformity. Furthermore, the dollar and the yuan are collapsing.
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