Hong Kong’s Legislative Council passed a bill Wednesday, Nov. 4, that would introduce a global framework for crypto-asset tax reporting, with data collection planned for 2027 and cross-border exchanges from 2028.
The government says relevant crypto-asset service providers would begin gathering information in 2027. Hong Kong’s Inland Revenue Department (IRD) is scheduled to share the reports with partner jurisdictions from 2028. Officials say the information would flow in both directions, with safeguards for confidentiality and data security.
The IRD’s overview of the proposal describes providers as responsible for checking users, collecting relevant details and filing reports each year. It includes exchanges between crypto-assets and fiat currency, swaps between crypto-assets, and transfers, including those to external wallet addresses. The overview says reportable users are people or entities that are tax residents in jurisdictions designated for reporting.
The Organisation for Economic Co-operation and Development (OECD) published the Crypto-Asset Reporting Framework (CARF) in 2023. It sets out annual exchanges of information on crypto transactions between tax authorities and relevant jurisdictions. Hong Kong’s government says the framework is intended to improve tax transparency and help curb evasion across borders, while supporting the city’s standing as an international financial and commercial center.
The bill would also amend the Common Reporting Standard (CRS), which covers financial-account information. The government says those changes would take effect in 2028, with exchanges under the revised standard planned to begin in 2029. Hong Kong says it has exchanged financial-account information annually under the existing standard since 2018.
Secretary for Financial Services and the Treasury Christopher Hui said adopting the standards would “reinforce the confidence of crypto-asset service providers, financial institutions and digital asset users.” The IRD says it will publish implementation guidance and provide technical assistance to affected businesses.
The government has not named the partner jurisdictions. The IRD says it will publish lists of reportable jurisdictions and exchange partners later, but has not set a release date.
