Hong Kong Launches 2028 Crypto Tax Data Sharing Talks

Hong Kong Introduces New Framework for Crypto-Asset Reporting

Hong Kong has initiated a public consultation on the implementation of the Crypto-Asset Reporting Framework (CARF) and updates to the Common Reporting Standard (CRS). This move is part of the city's efforts to align with global tax cooperation standards and enhance transparency in financial transactions involving digital assets.

The government's review outlines plans to begin automatically exchanging tax data on crypto-asset transactions with partner jurisdictions starting in 2028. Additionally, the updated CRS will be implemented in 2029. These changes are expected to bring greater clarity and consistency to how financial information is shared between Hong Kong and other countries.

Legislative Amendments and Reporting Obligations

The Financial Services and the Treasury Bureau has confirmed that amendments to the Inland Revenue Ordinance will be completed in the coming year. These amendments aim to support both CARF and the revised CRS. According to Christopher Hui, Secretary for Financial Services and the Treasury, the changes are designed to ensure that Hong Kong meets international tax cooperation standards and facilitates the automatic exchange of information on crypto-asset transactions.

In 2023, the OECD introduced CARF, which mandates annual reporting of transactions involving crypto-assets and introduces new due diligence practices. This framework expands the scope of financial information exchanged between tax authorities and includes additional digital financial products under the revised CRS.

Key Requirements Under the New Framework

The government consultation document provides detailed guidance on the procedures that reporting entities must follow. These include:

• Record-keeping requirements
• Verification procedures
• Data handling protocols
• Submission formats

These measures are intended to ensure compliance with the new framework once it is implemented.

In addition to CARF, the government plans to introduce mandatory registration for financial institutions involved in reporting under the CRS. This proposal takes into account the current peer review launched by the OECD, which is in its second round in 2024. The review aims to assess the effectiveness of Hong Kong’s administrative system.

Strengthening Enforcement and Compliance

To maintain Hong Kong’s standing in OECD surveys and ensure compliance, the government is also taking steps to increase penalties and enforce them more rigorously. This approach is aimed at reinforcing the city’s reputation as a responsible participant in global tax cooperation.

Timeline for Implementation

The automatic exchange of crypto-asset tax information is scheduled to begin in 2028, following the enactment of the necessary domestic legislation. The amended CRS will take effect in 2029. Officials have stated that only partner jurisdictions that meet confidentiality and data security standards will participate in the exchange mechanism.

Since 2018, Hong Kong has been part of the automatic exchange of financial account information using the existing CRS. This mechanism allows tax authorities in partner jurisdictions to use shared information to detect and investigate potential cross-border tax evasion.

Integration of Digital Assets into International Mechanisms

The initiatives aim to incorporate digital-asset reporting into the same international exchange mechanisms used for traditional financial accounts. Previous data indicate that CARF is designed to address the challenges associated with reporting digital assets and ensure that transactions involving crypto-related assets are included in existing information-sharing mechanisms.

Public Consultation and Next Steps

The proposals, reporting requirements, and enforcement elements are outlined in the consultation paper, which is available on the Financial Services and the Treasury Bureau website. The deadline for submitting views is February 6, 2026, and these can be submitted via post or email.

The government emphasized that public input will play a crucial role in shaping the implementation of CARF and the revised CRS as Hong Kong prepares to launch its crypto-asset tax information exchange with partner jurisdictions in 2028.

Get seen where it counts. Advertise in HAWXTECH.NET Research and reach crypto’s sharpest investors and builders.