Government Welcomes Passage of Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026
2026-11-04
Government welcomes passage of Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026
The Government welcomed the passage of the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 by the Legislative Council today (November 4) to implement in Hong Kong the Crypto-Asset Reporting Framework (CARF) and the latest amendments to the Common Reporting Standard (amended CRS) developed by the Organisation for Economic Co-operation and Development (OECD).
In light of the rapid development of digital asset markets in recent years, the OECD published CARF in 2023 to provide for the automatic exchange of tax information on crypto-asset transactions with partner jurisdictions on an annual basis, and amended the CRS to cover digital financial products and enhance the requirements regarding reporting and due diligence.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “Hong Kong has been supporting international efforts in enhancing tax transparency and combatting cross-border tax evasion. Implementing the latest international standards for automatic exchange of information in tax matters is crucial to maintaining Hong Kong’s reputation as an international financial and commercial centre. Aligning with the latest international standards will reinforce the confidence of crypto-asset service providers, financial institutions and digital asset users in operating and making long-term investments in Hong Kong.”
The Secretary for Financial Services and the Treasury, Mr Christopher Hui. Photo source: reference image
CARF will be implemented in Hong Kong next year when relevant service providers will be required to collect the information specified under the framework for the Inland Revenue Department (IRD) to exchange with partner jurisdictions starting from 2028. The amended CRS will also take effect in 2028, and the IRD will automatically exchange financial account information with suitable partners in accordance with the new standard starting from 2029. Hong Kong will conduct information exchanges on a reciprocal basis and on the premise of data confidentiality and security.
To assist the industry in adapting to the new requirements and to enhance tax certainty, the IRD will issue relevant guidance and has set up a dedicated team to provide technical support to the industry and address their enquiries.
Since 2018, Hong Kong has been conducting automatic exchange of financial account information with partner jurisdictions annually in accordance with the CRS developed by the OECD, assisting relevant tax authorities to detect and combat tax evasion.
Sources: Bastille Post
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