Hong Kong’s Legislative Council voted to enact a crypto‑tax reporting bill that aligns the city with the Organisation for Economic Co‑operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF). The law, announced on November 4, 2026, obliges crypto exchanges, brokers and other qualifying service providers to collect detailed customer information and report qualifying transactions to the Inland Revenue Department (IRD) beginning Jan 1 2027, with cross‑border data exchanges commencing in 2028.

Reporting obligations for crypto firms

Under the new rules, covered entities must register with the IRD by the start of 2027 and gather each customer’s name, address, tax residency, identification number and date of birth. All crypto purchases, sales, exchanges and transfers – including movements to external wallets – are subject to reporting. Existing customers must provide a tax‑residency declaration by Jan 2028, while new customers will be required to do so at onboarding.

International data sharing

From 2028, the IRD will exchange the collected crypto‑transaction data with jurisdictions that participate in the OECD‑led information‑sharing network. The framework mirrors the Common Reporting Standard (CRS) that Hong Kong has used for traditional financial accounts since 2018, and the government plans to update CRS rules in 2028 with automatic exchanges starting in 2029.

Implications and next steps

The legislation does not impose a new tax on crypto transactions; it solely expands reporting duties to improve tax transparency. Financial Services and the Treasury Secretary Christopher Hui said the move should boost confidence among financial institutions, crypto businesses and users. The IRD has set up a task force to issue guidance and answer technical queries, and will later publish a list of participating jurisdictions. Industry observers note that the timing aligns with similar moves in Europe, such as France’s pending stablecoin conversion tax.

What to watch next

Key developments to monitor include the publication of the jurisdiction list for data exchange, the issuance of detailed compliance guidelines by the IRD, and how crypto firms adjust their onboarding and KYC processes ahead of the 2027 deadline. Additionally, the impact on cross‑border crypto flows and any further regulatory adjustments in the region will be closely followed.