Hong Kong authorities passed legislation implementing international tax reporting standards for crypto-asset transactions, including the automatic exchange of information between tax authorities in different jurisdictions. Collection of cryptocurrency transaction data will begin in 2027, followed by international information exchange in 2028.
Hong Kong’s Legislative Council approved the Inland Revenue Bill 2026, establishing new requirements for collecting and exchanging tax information on cryptocurrency transactions and financial accounts internationally. The legislation aligns local regulations with the Crypto-Asset Reporting Framework (CARF) and Common Reporting Standard (CRS) developed by the Organisation for Economic Co-operation and Development (OECD).
The CARF standard, approved in 2023, provides for the annual automatic exchange of cryptocurrency transaction information between tax authorities in participating jurisdictions.
The CRS standard was introduced in 2014 to combat tax evasion. In 2023, the OECD updated its provisions, expanding coverage to new categories of digital financial products and clarifying reporting and customer due diligence requirements.
Information will be exchanged through Hong Kong’s Inland Revenue Department (IRD) on a reciprocal basis, subject to confidentiality and data security requirements.
Hong Kong will introduce the new crypto-asset tax reporting requirements in phases:
- January 1, 2027: Cryptocurrency service providers subject to CARF requirements must begin collecting information on customers and their transactions and conducting the necessary due diligence procedures.
- 2028: The IRD will begin automatically exchanging cryptocurrency transaction data with tax authorities in partner jurisdictions. The updated CRS will also take effect in Hong Kong, extending reporting requirements to additional categories of digital financial products.
- 2029: Hong Kong will begin sharing financial account information with foreign tax authorities under the CRS.
Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, said implementing international tax transparency standards would strengthen efforts to combat tax evasion involving overseas jurisdictions and reinforce Hong Kong’s position as an international financial center.
According to Hui, aligning local regulations with OECD requirements should also strengthen confidence in Hong Kong among cryptocurrency service providers, financial institutions, and digital asset users, including when making long-term investment decisions.
To help market participants prepare for the new requirements, the IRD will issue guidance on implementing CARF and CRS. The department also established a dedicated team to provide technical support to companies and answer questions about compliance with the new obligations.
In 2026, 48 countries and jurisdictions began collecting cryptocurrency transaction data under CARF, while another 27 countries, including Australia, plan to join the system by 2028. Meanwhile, the industry is actively developing automated reporting tools designed to help fintech platforms, exchanges, custodians, and other financial institutions comply with regulatory requirements for crypto-asset disclosures.
