Hong Kong passes crypto reporting bill ahead of 2027 rules

Hong Kong’s Legislative Council passed legislation on November 4 requiring covered crypto-asset service providers to collect customer and transaction information from 2027, with annual exchanges of the data with partner jurisdictions scheduled to begin in 2028. The Inland Revenue Amendment Crypto-Asset Reporting Framework and Amended Common Reporting Standard Bill 2026 implements the OECD’s Crypto-Asset Reporting Framework, known as CARF, and updates Hong Kong’s Common Reporting Standard, or CRS. The requirements establish reporting obligations; they do not introduce a new tax rate on cryptocurrency holdings or change existing tax brackets, according to the legislation’s description in the reports. Covered providers are to verify reportable users, collect identifying details including tax residence and taxpayer identification numbers, and file reports with Hong Kong’s Inland Revenue Department. The information is to cover transactions such as exchanges between crypto-assets and fiat currency, swaps between crypto-assets, and certain transfers to external wallets. The framework applies to providers with a reporting connection to Hong Kong, including exchanges, brokers and...