Hong Kong has launched a public consultation on plans to implement the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) and updated Common Reporting Standard (CRS), marking a major step toward expanding cross-border tax transparency to include digital assets.
The consultation, announced by the government on December 9, outlines Hong Kong’s proposal to automatically exchange tax information on crypto-asset transactions with approved partner jurisdictions from 2028, with full implementation scheduled for 2029.
The initiative aims to strengthen Hong Kong’s compliance with global tax standards and combat cross-border tax evasion as digital asset activity accelerates worldwide.
Background on Global Tax Reporting Standards
Hong Kong has been participating in the automatic exchange of financial account data under the CRS since 2018.
However, the rapid growth of crypto markets prompted the OECD to release CARF in 2023, establishing a unified global system for reporting and sharing tax information related to crypto transactions. The OECD also expanded CRS requirements to cover new digital financial products and enhanced due diligence rules.
Legislative and Implementation Plans
Secretary for Financial Services and the Treasury Christopher Hui said amendments to the Inland Revenue Ordinance will be necessary to adopt CARF and align Hong Kong’s legal framework with the updated CRS.
He emphasized that the reforms are essential not only for fulfilling international obligations but also for safeguarding Hong Kong’s standing as a global financial hub.
The government plans to complete the required legislative work within the coming year. Under the proposal, Hong Kong would exchange crypto-transaction tax data only with jurisdictions that meet strict confidentiality and security standards, ensuring reciprocal protections.
Enhancements to CRS Implementation
Additionally, Hong Kong is preparing for the OECD’s second-round peer review of its CRS implementation. To maintain a strong rating, the government is proposing stricter measures, including mandatory registration for financial institutions, higher penalties, and strengthened enforcement powers.
Officials say these enhancements will improve compliance oversight and reinforce confidence in Hong Kong’s regulatory regime as digital asset adoption expands.