Hong Kong to expand crypto tax reporting requirements

Hong Kong will require crypto platforms to report users’ tax residency data, expanding oversight to 8,000 more institutions. The new rules are under review and expected to take effect from January 2027.

Hong Kong is advancing its regulatory framework for cryptocurrency taxation with the passage of the Inland Revenue (Amendment) (Automatic Exchange of Information) Bill 2026 and the introduction of the Crypto Asset Reporting Framework (CARF) bill, currently under legislative review. The CARF proposal requires licensed crypto exchanges and service providers to collect, verify, and, when necessary, share users’ tax residency information with authorities. This framework is expected to bring around 8,000 additional financial institutions under mandatory registration and reporting requirements, with most anticipated to file nil returns. All reporting platforms must register with the tax department by January 31 each year and maintain detailed records, even if operations cease. The new rules are set to take effect from January 1, 2027, with the first international exchange of information planned for the following year. The legislative process includes committee-level scrutiny and public consultation, aligning Hong Kong’s crypto regulations with international tax transparency standards.