Hong Kong Launches Consultation on Crypto Tax Reporting Framework

Hong Kong has launched a public consultation on implementing the OECD's Crypto-Asset Reporting Framework and amendments to existing tax information exchange standards, the territory's government announced Tuesday.

The consultation seeks feedback on proposed amendments to the Inland Revenue Ordinance that would enable Hong Kong to automatically exchange tax information on crypto-asset transactions with partner jurisdictions starting in 2028. The government plans to complete legislative amendments in the coming year.

The OECD published the Crypto-Asset Reporting Framework in 2023 to facilitate automatic exchange of tax information on crypto transactions, responding to rapid growth in digital asset markets. The framework also incorporated new digital financial products and enhanced reporting requirements into the existing Common Reporting Standard.

Christopher Hui, Secretary for Financial Services and the Treasury, said implementing CARF and the amended CRS demonstrates Hong Kong's commitment to international tax cooperation and combating cross-border tax evasion. He described the measures as essential for maintaining Hong Kong's reputation as an international financial center.

Hong Kong has exchanged financial account information automatically with partner jurisdictions under the CRS since 2018, enabling tax authorities to use the data for assessments and detecting tax evasion.

The government also proposes introducing mandatory registration for financial institutions to enhance identification, along with raising penalty levels and strengthening enforcement mechanisms. The changes respond to the OECD's ongoing second round of peer review on Hong Kong's CRS implementation framework.

Hong Kong will implement automatic exchange of tax information with partners on a reciprocal basis, requiring them to meet standards for data confidentiality and security. The government plans to begin exchanging crypto transaction data in 2028 and implement the amended CRS in 2029.

The consultation paper is available on the Financial Services and the Treasury Bureau website, with public comments accepted through February 6, 2026.