- Hong Kong has passed a new law requiring cryptocurrency exchanges and other service providers to collect and report customer transaction details from January 2027.
- The rules will cover crypto purchases, sales, exchanges and transfers, including transactions involving external wallets.
- Hong Kong will begin sharing reported crypto information with participating countries and jurisdictions in 2028. The law does not introduce any additional tax on crypto transactions.
Hong Kong Passes Cryptocurrency Tax Reporting Law
A new tax reporting law requiring crypto service providers to gather customer data and report taxable transactions from January 1 2027, has been passed.
The law has been developed following the Organization for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF) and will apply to crypto exchanges, brokers and qualifying service providers. From 2028 this information will also be shared with participating countries and jurisdictions.
THE BLOCK: Hong Kong lawmakers have passed a bill to implement OECD crypto-asset tax reporting rules, according to a government statement.
The law requires relevant crypto-asset service providers to collect transaction information from 2027 for automatic tax information exchanges with partner jurisdictions starting in 2028.
— The Block (@TheBlockCo) November 4, 2026
The new framework will help increase transparency in taxation by helping authorities monitor cross-border activities. The requirement will include gathering personal information such as a customer’s name, address, tax residency status, ID number and date of birth. Reporting will also be required for qualifying crypto-related activities including buying, selling, swapping and transferring crypto.
Registration Of Crypto Businesses
All crypto service providers subject to the requirements will need to register with the Inland Revenue Department (IRD).
Customers will also need to declare their tax residency status. Current customers will be provided with until January 2028 to provide the necessary information. The reporting requirements will apply to businesses based, tax resident, managed and/or operating in Hong Kong.
It should be noted that under the new law there will not be any extra tax applied to crypto transactions. The law’s primary aim is to gather and share financial information.
Information Sharing With International Jurisdictions
From 2028, the tax department will start sharing the information reported by crypto businesses. The government have stated this will be done under strict confidentiality and data protection conditions. A list of the jurisdictions involved will be published at a later date.
In addition to the crypto reporting framework changes have also been approved for the current Common Reporting Standard (CRS). Since 2018 Hong Kong has been sharing financial account information. These changes will come into effect in 2028. Automatic sharing of financial account information will commence in 2029.
“This brings us closer to global standards and can enhance confidence amongst financial institutions, crypto businesses and digital asset users,” said Christopher Hui, Financial Services and Treasury Secretary. A taskforce has also been created to assist affected businesses with the requirements. This has been set up by the IRD.
This news comes after several countries have been increasing their stance on crypto reporting. Hong Kong’s decision shows how the industry is increasingly looking to ensure digital assets fall under international financial reporting standards.
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