Hong Kong Passes Landmark Crypto Legislation

Hong Kong's Legislative Council has made significant strides in regulating cryptocurrency assets. The Crypto Asset Reporting Framework (CARF) Bill has entered the review stage, marking a key milestone in the government's efforts to bring clarity and order to the sector.

According to Hong Kong media Ming Pao, Legislative Council member Jan Wai-man revealed that the 2026 Taxation (Amendment) (Automatic Exchange of Information) Bill was passed last week. This development is seen as a crucial step towards implementing stricter regulations on cryptocurrency assets in the territory.

The government's move comes as it recovers over HKD100 million in taxes and fines from 2018 to 2025, with an estimated additional 8,000 financial institutions expected to register compulsorily in the future. The increased scrutiny is likely to have a profound impact on the sector, with investors and institutions alike being forced to adapt to the new landscape.