TLDR
- Hong Kong passed new crypto tax reporting legislation on November 4, 2026.
- Covered crypto exchanges and brokers must begin collecting customer transaction information in January 2027.
- Hong Kong will begin exchanging crypto tax information with participating overseas authorities in 2028.
- The rules require providers to record customer identities, tax residency, crypto trades and wallet transfers.
- The legislation adopts the OECD’s Crypto-Asset Reporting Framework to support international tax reporting.
Hong Kong lawmakers passed a crypto tax reporting law on November 4, requiring covered exchanges and brokers to collect customer transaction records from January 2027. The Inland Revenue Department will begin sharing the data with overseas tax authorities in 2028.
The legislation brings the city under the OECD’s Crypto-Asset Reporting Framework (CARF). The system lets tax authorities review their residents’ crypto activity through services operating in other jurisdictions.
Hong Kong Sets Reporting Timeline
Service providers covered by the rules must register with the Inland Revenue Department, check customer tax details, and file reports. Firms must also keep records of the information they collect. The department plans a dedicated reporting portal for submitting required information.
Reports must identify customers by name, address, tax residence, and tax identification number. In separate news, on November 1, investigators tracked cross-chain crypto transfers linked to suspected North Korean hackers.
Transactions Covered Under the New Law
Firms must track purchases, sales, token swaps and transfers to external wallets. They will report annual transaction totals for covered transactions. Reporting a wallet transfer does not automatically mean it creates a taxable gain. Providers must record both the number of transactions and their total values.
The OECD agreed on CARF in 2022 and published its international standards in 2023. Hong Kong introduced mandatory licensing for centralised crypto trading platforms in 2023. The new legislation addresses tax reporting rather than trading permissions.
Financial Account Rules Also Change
Separate amendments expand the Common Reporting Standard to cover certain digital money products, crypto-linked derivatives and investment entities holding crypto. Separately, Schroders announced plans to tokenize emerging-market bonds through Solana on November 4.
Those changes will take effect in January 2028, with the first revised reports shared in 2029. Hong Kong has exchanged financial account records through the existing system since 2018.
Data Sharing and Industry Guidance
Hong Kong said it will exchange data only with suitable foreign jurisdictions that meet security standards and share information in return. Elsewhere, tokenized stock trading plans have faced objections from several US companies.
Financial services secretary Christopher Hui said the framework supports efforts against cross-border tax evasion. The department will issue guidance and has formed a support team to answer questions from affected firms.
