Two of Asia's most important crypto hubs—Singapore and Hong Kong—have committed to CARF implementation in 2027. Their participation will significantly expand the framework's coverage of global crypto trading activity.

Timeline

Data Collection: January 1, 2027
First Exchange: 2028
Wave: Second wave jurisdictions

Singapore: The Regional Crypto Hub

Singapore has positioned itself as Southeast Asia's leading crypto center:

  • Home to major global exchanges' regional headquarters
  • Clear licensing framework under the Payment Services Act
  • MAS (Monetary Authority of Singapore) oversight
  • Significant institutional crypto activity

Singapore's CARF Preparation

The MAS has been working on CARF implementation details:

  • Regulatory guidance expected in 2026
  • Integration with existing PSA reporting requirements
  • Coordination with AML/CFT frameworks

Hong Kong: Crypto-Friendly Pivot

Hong Kong has been actively courting the crypto industry:

  • New licensing regime launched in 2023
  • Retail crypto trading permitted for licensed platforms
  • Growing number of licensed Virtual Asset Service Providers
  • Ambition to become Asia's Web3 hub

Hong Kong's CARF Approach

The Securities and Futures Commission (SFC) is leading implementation:

  • CARF requirements will apply to licensed VASPs
  • Integration with existing regulatory reporting
  • Cross-border coordination with mainland China remains unclear

Why 2027 Instead of 2026?

Both jurisdictions opted for the second wave to allow time for:

  • Finalizing domestic legal frameworks
  • Building technical infrastructure
  • Negotiating bilateral exchange agreements
  • Providing industry guidance

Impact on Regional Crypto Industry

With Singapore and Hong Kong joining CARF:

  • Most licensed Asian crypto activity will be covered by 2028
  • Regional arbitrage opportunities will diminish
  • Compliance standards will converge across major hubs
  • Users should expect similar reporting requirements regardless of which hub they use

Comparison: Singapore vs Hong Kong

Factor Singapore Hong Kong
CARF Start January 2027 January 2027
Regulator MAS SFC
License Type Payment Services VASP License
Retail Trading Yes (licensed) Yes (licensed)

Prepare for 2027

CARFDAC8 supports compliance across all Asian CARF jurisdictions.

Expert Consulting