Hong Kong’s Legislative Council passed the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 on November 4, establishing a new compliance regime for crypto-asset service providers. The legislation adopts the OECD’s Crypto-Asset Reporting Framework, commonly known as CARF, alongside amendments to the existing Common Reporting Standard.
Under the new requirements, covered crypto businesses must begin collecting customer and transaction information in 2027. Automatic exchanges of crypto-related tax information between Hong Kong and partner jurisdictions are scheduled to start in 2028. The amended Common Reporting Standard will also take effect in 2028, with international exchanges of financial account information under the updated rules beginning in 2029.
The framework applies to businesses that facilitate cryptocurrency transactions for customers, including exchanges, brokers, dealers and certain operators of crypto ATMs. Companies with a reporting connection to Hong Kong will face registration, customer due diligence, recordkeeping and reporting obligations. Reportable activity includes exchanges between cryptocurrencies and fiat currencies, trades between different crypto assets, and certain transfers involving external wallets.
Service providers must collect identifying information about reportable customers, including tax residence and taxpayer identification numbers, along with relevant transaction details. The framework covers fungible and non-fungible crypto assets that can be used for payments or investments. Central bank digital currencies, specified electronic money products and certain assets that cannot be used for payments or investments are excluded.
Financial Services and the Treasury Secretary Christopher Hui said the measures support international tax transparency and help tackle cross-border tax evasion. “Implementing the latest international standards for automatic exchange of information in tax matters is crucial to maintaining Hong Kong’s reputation as an international financial and commercial centre,” Hui said.
The legislation follows a consultation held between December 2025 and February 2026. The government published the proposed legislation in May and introduced it to lawmakers in June. The Inland Revenue Department plans to publish implementation guidance and has established a dedicated team to provide technical assistance to affected businesses.
Blockchain analytics firm Chainalysis previously estimated that potentially taxable onchain cryptocurrency activity exceeded $457 billion globally in 2025. According to that analysis, transactions within the practical reach of CARF represented approximately 14% of the activity, while the remaining portion included decentralized exchange transactions, peer-to-peer transfers, onchain income and crypto payments outside the framework’s practical reporting coverage.
