The Legislative Council passes the amended bill on the Crypto-Asset Reporting Framework, to be implemented in Hong Kong starting next year.

On November 4, the Hong Kong SAR Government welcomed the passage by the Legislative Council of the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Revised Common Reporting Standard) Bill 2026, which implements in Hong Kong the Crypto-Asset Reporting Framework (CARF) and the latest amendments to the Common Reporting Standard (CRS) formulated by the Organisation for Economic Co-operation and Development (OECD). The CARF will be implemented in Hong Kong from next year, and relevant service providers will then be required to collect information specified under the framework for exchange by the Inland Revenue Department (IRD) with partner tax jurisdictions from 2028. The revised CRS will also be implemented from 2028, and the IRD will automatically exchange financial account information with suitable partners under the new standard from 2029. Hong Kong will conduct information exchange on a reciprocal basis and on the premise of ensuring the confidentiality and security of information. In response to the rapid development of the digital asset market in recent years, the OECD announced the CARF in 2023 to enable partner tax jurisdictions to automatically exchange tax-related information on crypto-asset transactions annually, and amended the CRS to cover digital financial products and enhance reporting and due diligence. The Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, said: "Hong Kong has always supported international efforts to enhance tax transparency and combat cross-border tax evasion. Implementing the latest international standard for automatic exchange of tax information is crucial to maintaining Hong Kong's reputation as an international financial and commercial centre. Aligning with the latest international standards will give crypto-asset service providers, financial institutions and digital asset users greater confidence to operate and make long-term investments in Hong Kong." To help the industry adapt to the new requirements and enhance tax certainty, the IRD will issue relevant guidelines and has set up a dedicated team to provide technical support and answer enquiries for the industry. Since 2018, Hong Kong has automatically exchanged financial account information with partner tax jurisdictions annually under the CRS formulated by the OECD, assisting relevant tax authorities in detecting and combating cross-border tax evasion.