Hong Kong OKs Crypto Tax Reporting Law, New Rules Start 2027
Hong Kong has passed a major cryptocurrency reporting law that will require crypto exchanges, brokers and other digital asset service providers to collect and report customer transaction information from 2027. The law, passed by the Legislative Council on 4 November 2026, puts in place the Organization for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF).
The move is intended to boost international tax transparency and enhance collaboration between tax authorities, as well as to bring cryptocurrency activities into a more standardized reporting system.
Hong Kong to Start Crypto Reporting Rules in 2027
The new legislation will require crypto service providers operating in Hong Kong to begin collecting customer information and reporting qualifying transactions to the Inland Revenue Department (IRD) from January 1, 2027. The rules apply to cryptocurrency exchanges, brokers, and other businesses that meet the reporting thresholds established in the framework.
Information providers will be required to collect customers’ full names, home addresses, tax residency details, identification numbers and dates of birth. Companies will also be required to monitor and report qualifying cryptocurrency transactions including the purchase, sale, exchange and transfer of digital currencies to external wallets.
Covered businesses will be required by law to register with the IRD from January 2027. Existing customers will be required to provide tax residency declarations by January 2028 and new customers will be required to provide the required information when setting up their accounts or relationships with reporting providers.
These requirements will increase the compliance burden on crypto businesses, particularly those that process high transaction volumes or have customers in multiple jurisdictions.
2028 International Sharing of Crypto Information to Start
Hong Kong will start sharing the crypto information it gathers with other jurisdictions that participate internationally in 2028. The move is consistent with OECD standards to enable tax authorities to detect cross-border digital asset activities and to improve transparency in tax reporting.
Under CARF, participating jurisdictions may exchange information relevant to crypto users, based on their tax residence. Qualifying businesses incorporated, tax resident, managed or operating in Hong Kong will be subject to reporting obligations.
Importantly, the law does not create a new crypto tax or impose any additional tax on transactions in digital currencies. Instead, it creates reporting and information-sharing requirements to help authorities track taxable crypto transactions.
The move comes as other countries are considering more stringent cryptocurrency tax policies. French lawmakers have approved a proposal for a 31.4% tax on certain crypto-to-stablecoin conversions starting in 2027, though the measure still needs final approval.Hong Kong Revises Financial Reporting Standards
In addition to the cryptocurrency reporting legislation, Hong Kong also passed amendments to its existing Common Reporting Standard (CRS). The new requirements will be effective from 2028, with automatic exchanges of financial account information expected to begin in 2029. Hong Kong has been exchanging international financial account information under the existing CRS framework since 2018.
International reporting standards could help boost confidence among financial institutions, cryptocurrency firms and users of digital currencies, said Financial Services and the Treasury Secretary Christopher Hui.
A task force has been formed by the Inland Revenue Department to help businesses facing new compliance obligations. The team will provide guidance and answer technical questions for companies using the reporting framework.
The government also confirmed that international information exchanges will take place under confidentiality and data security protections. The participating jurisdictions will be announced at a later date.
In general terms, Hong Kong’s new crypto reporting framework is a major step toward aligning its digital asset sector with international tax transparency standards. From 2027, Crypto businesses will have more responsibilities for verifying customers, monitoring transactions and reporting. International data sharing will expand from 2028.
