Hong Kong Approves Tax Reporting Rules for Cryptocurrencies

On November 4, 2026, the Legislative Council of Hong Kong adopted amendments implementing the international standard Crypto-Asset Reporting Framework (CARF). Starting in 2027, some crypto companies will be required to collect information about clients and transactions, and from 2028, this data will begin to be transmitted to tax authorities in partner jurisdictions. The amendments do not introduce a new tax on cryptocurrencies.

Which companies and operations will fall under CARF

The new obligations apply to service providers with reporting ties to Hong Kong. These include crypto exchanges, brokers, dealers, and certain operators of crypto ATMs that conduct exchanges on behalf of clients.

Companies will be required to register, verify the tax residency of clients, request their tax identifiers, and maintain records. Information subject to transmission includes the exchange of crypto assets for fiat money, transactions between tokens, and certain transfers to external wallets. Data on transactions is transmitted in aggregated form.

CARF covers crypto assets suitable for payments and investments, including certain NFTs. Central bank digital currencies and some electronic money are excluded from this standard.

When data exchange will begin

Information collection under CARF will start on January 1, 2027. The first automatic exchange with relevant foreign tax authorities is scheduled for 2028. The exchange will be mutual and confidential.

At the same time, Hong Kong updated the Common Reporting Standard (CRS), which is in effect for the exchange of information on financial accounts. The amendments will come into force in 2028, with the first exchange under the new requirements taking place in 2029. CRS will also cover certain digital financial products.

What will change for market participants

The Hong Kong tax authority promised to publish guidelines and organized technical support for companies. According to Christopher Hui, Secretary for Financial Services and the Treasury, the goal of the reform is to comply with international transparency standards and counter cross-border tax evasion.

For users, the main change is that operations through accountable services may be included in the international exchange of tax information. This does not mean automatic reporting of any transfers from non-custodial wallets or the introduction of a new tax on every transaction.