Cryptocurrency practitioners in Hong Kong have recently been deeply concerned about the CARF regulations. At first glance, this new rule seems to aim at regulating the market, but in reality, it might actually cause more trouble for businesses—rising operational costs, blurred legal boundaries, fines for violations often reaching tens of millions, who dares to touch it casually?

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 tiers—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 understands them differently; finally, a buffer period must be provided for the industry—policies shouldn't be implemented fully the day after they are announced.

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