- The government plans to enable the automatic exchange of tax information on crypto asset transactions with other jurisdictions
- It also aims to pass local legislative amendments within a year, start data exchange under CARF around 2028, and roll out the amended CRS by 2029
- As of late 2025, the city’s licensing regime for virtual asset trading platforms (VATPs) is becoming more established, with multiple licensed platforms under the supervision of the local regulator
The Hong Kong government launched a public consultation on implementing the Crypto‑Asset Reporting Framework (CARF) and making related amendments to the Common Reporting Standard (CRS), both developed by the Organisation for Economic Co-operation and Development (OECD).
The goal is to enable automatic exchange of tax information on crypto asset transactions with other jurisdictions. The government plans to pass local legislative amendments within a year, start data exchange under CARF around 2028, and roll out the amended CRS by 2029.
Christopher Hui, the Secretary for Financial Services and the Treasury, stated that this step shows the city is serious about working with other countries on tax rules, while also protecting its image as a top global hub for business and finance.
Related: Hong Kong Adds Two New Laws to Its Virtual Asset Regulatory Framework
Since last year, the OECD has been rechecking how Hong Kong enforces its tax information sharing rules. To address the feedback and keep its global standing strong, the Hong Kong government is proposing new legal changes, which would require all financial firms to register, improve how they verify clients, and face stiffer penalties for non-compliance.
Hong Kong’s Crypto Hub Push Meets Stricter Reporting Rules
Hong Kong has been actively trying to become the go-to destination for crypto trading, managing digital investment funds, and related businesses. A big part of this plan involves introducing official licenses for crypto exchanges and other companies operating in the space.
As of late 2025, the city’s licensing regime for virtual asset trading platforms (VATPs) is becoming more established. There are now multiple licensed platforms under the supervision of the local regulator, with a dual-license structure involving both the Securities and Futures Commission (SFC) and the banking regulator, depending on the product.
Related: Hong Kong to Ease Restrictions on Crypto Trading to Boost Market Activity
Also, Hong Kong has loosened some rules to let its approved crypto exchanges connect their trading systems to partner platforms abroad. This is designed to deepen the pool of available buyers and sellers, aiming to create better prices and make the market more accessible globally.
Still, for everyday crypto users (especially anyone sending funds internationally or using their own wallet apps), the announcement to share crypto asset data means less anonymity. Once the system is active, tax authorities in other countries will be able to see data about users’ crypto holdings and transfers.
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Source: https://coinedition.com/hong-kong-prepares-to-share-crypto-asset-data-with-tax-authorities-worldwide/
