The Government today welcomed the passage of the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework & Amended Common Reporting Standard) Bill 2026 by the Legislative Council.

The bill aims to implement, in Hong Kong, the Crypto-Asset Reporting Framework (CARF) and the latest amendments to the Common Reporting Standard (CRS) developed by the Organisation for Economic Co-operation & 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 requirements regarding reporting and due diligence.

Secretary for Financial Services & the Treasury Christopher Hui said that implementing the latest international standards for the automatic exchange of information on tax matters is crucial to maintaining Hong Kong's reputation as an international financial and commercial centre.

Mr Hui added that aligning with the latest 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.

CARF will be implemented in Hong Kong next year when relevant service providers will be required to collect the information specified under the framework, allowing the Inland Revenue Department to exchange this information with partner jurisdictions, starting from 2028.

The amended CRS will also take effect in 2028, and the Inland Revenue Department will automatically exchange financial account information with suitable partners in accordance with the new standard starting from 2029. Hong Kong will conduct exchanges of information 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 department will issue relevant guidance and has set up a dedicated team to provide technical support to the industry and address enquiries from it.

Since 2018, Hong Kong has conducted automatic exchanges of financial account information with partner jurisdictions annually in accordance with the CRS, thereby helping tax authorities to detect and combat tax evasion.