Hong Kong’s Legislative Council passed a law Nov. 4 requiring covered crypto-asset service providers to collect customer identity and transaction records starting in 2027, adding crypto activity to the city’s tax-reporting system.
Providers must gather customers’ names, addresses, tax residence and tax identification numbers. Records will include purchases, sales, crypto-to-crypto swaps and transfers to external wallets, with yearly transaction totals compiled.
Hong Kong’s Inland Revenue Department is scheduled to begin automatically exchanging data with partner jurisdictions in 2028. Information will be sent only to jurisdictions where a customer is a tax resident, subject to reciprocity and safeguards for confidentiality and data security. The information will not be made public.
The law implements the OECD’s Crypto-Asset Reporting Framework (CARF). It also amends Hong Kong’s existing Common Reporting Standard: those changes take effect in 2028, with exchanges scheduled to start in 2029. Hong Kong has exchanged financial-account data with partner jurisdictions annually under that standard since 2018.
The measure establishes reporting and information-sharing rules; it does not introduce a new tax.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to [email protected].
