Hong Kong's crypto industry professionals have recently been struggling with CARF regulations. These new rules seem to aim at regulating the market, but in reality, they might end up causing more trouble for businesses—rising operational costs, blurred legal boundaries, fines that can easily reach tens of 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, so companies don't keep falling into traps; second, the penalty mechanism should have levels—imposing heavy fines for mistakes is unreasonable; API reporting standards also need to be unified and clarified, it can't be that each exchange understands them differently; finally, a buffer period must be provided for the industry, policies shouldn't be implemented fully overnight.

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.