Hong Kong Introduces Crypto-Asset Reporting Bill for Enhanced Tax Transparency

The Hong Kong government has announced plans to introduce a new Crypto-Asset Reporting Bill in 2026, aimed at enhancing tax transparency in the digital asset market. The bill is designed to implement the Crypto-Asset Reporting Framework (CARF) and amended Common Reporting Standard (CRS) developed by the Organisation for Economic Co-operation and Development (OECD).

The CARF will require crypto-asset service providers with reporting nexus with Hong Kong to register with the Inland Revenue Department, including due diligence, return filing, and record keeping. The bill also plans to commence automatic exchange of tax information on crypto-asset transactions with relevant jurisdictions starting from 2028.