The Hong Kong Special Administrative Region Government today welcomed the passage of the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 by the Legislative Council. The landmark legislation officially integrates the Crypto-Asset Reporting Framework and the updated Common Reporting Standard developed by the Organisation for Economic Co-operation and Development into the territory’s legal frame. This step underscores Hong Kong’s commitment to adopting global automatic exchange of tax information standards to curb cross-border tax evasion and bolster oversight of digital financial assets.
Introduced by the Organisation for Economic Co-operation and Development in 2023, the Crypto-Asset Reporting Framework establishes a systematic framework for exchanging tax information on digital asset transactions annually with international partner jurisdictions. Concurrently, the amended Common Reporting Standard broadens the scope of reportable digital financial products while upgrading existing due diligence and reporting protocols. Together, these measures aim to address compliance gaps arising from the rapid growth of the global cryptocurrency and digital finance sectors.
Highlighting the strategic importance of the legislation, Secretary for Financial Services and the Treasury Christopher Hui emphasized that Hong Kong remains dedicated to supporting international tax transparency and maintaining its reputation as a global financial hub. He noted that aligning local laws with international norms will boost confidence among crypto-asset service providers, financial institutions, and digital asset users, encouraging sustained, long-term investments in the region.
Under the phased implementation schedule, the Crypto-Asset Reporting Framework will take effect next year, requiring service providers to begin gathering necessary client data for automatic exchange by the Inland Revenue Department starting in 2028. The amended Common Reporting Standard will officially come into force in 2028, with reciprocal exchanges of financial account information set to commence in 2029. Authorities reiterated that all data exchanges will strictly adhere to international principles of reciprocity, confidentiality, and data security.
To facilitate a smooth transition for businesses and provide regulatory clarity, the Inland Revenue Department will issue comprehensive guidelines and deploy a dedicated technical support team to assist industry stakeholders. Hong Kong has actively participated in international tax information exchanges under the original Common Reporting Standard framework since 2018, routinely aiding partner tax authorities in detecting evasive practices and enforcing international compliance.
