Hong Kong passes crypto tax-reporting law ahead of 2027 collection

Hong Kong’s Legislative Council passed its crypto-asset reporting bill on 4 November. Relevant service providers will begin collecting information in 2027, with exchanges between tax authorities starting in 2028.

The legislation implements the OECD’s Crypto-Asset Reporting Framework, known as CARF. Its purpose is annual sharing of information on crypto transactions with partner jurisdictions, extending international tax transparency arrangements to these assets.

For customers, the distinction is between information being collected and that information being exchanged internationally. Those stages have different start dates. The announcement concerns reporting obligations; it does not announce a new blanket tax rate on crypto holdings or transactions.

The same bill updates the Common Reporting Standard for financial accounts. Those amendments take effect in 2028, followed by exchanges under the revised standard from 2029. Hong Kong says exchanges will be reciprocal and subject to confidentiality and security conditions. Its tax department plans guidance and has established a team to help providers implement the requirements.