Hong Kong's crypto industry professionals have recently been deeply concerned about the CARF regulations. Although this new regulation seems to aim at standardizing the market, it might actually cause more problems for businesses—rising operational costs, blurred legal boundaries, fines that can easily reach millions, who dares to take risks?

Currently, the industry's most voiced demands are as follows. First, the scope of privacy protection must be clearly defined to prevent companies from constantly falling into traps; second, the penalty mechanism should have levels—imposing heavy fines for mistakes is unreasonable; the API reporting standards also need to be unified and clarified—it's not acceptable that each exchange interprets them differently; finally, a buffer period must be provided for the industry—policies shouldn't be implemented overnight with immediate full compliance required.

Ultimately, good regulation should protect the market without stifling innovation. If rules are too rigid, they might push compliant companies to relocate elsewhere. Hong Kong needs to find a balance.