Hong Kong Plans Crypto Tax Info Sharing by 2029
Hong Kong opens consultation on new crypto tax rules under CARF, aiming for global info exchange by 2029.
- Hong Kong to adopt CARF and CRS changes by 2029.
- Aims to fight cross-border crypto tax evasion.
- Public consultation open for feedback on new rules.
The Hong Kong government has initiated a public consultation to gather opinions on proposed changes to the Crypto Asset Reporting Framework (CARF) and the Common Reporting Standard (CRS). This move signals the city’s effort to align with global standards in tackling tax evasion involving crypto assets.
CARF was developed by the OECD to bring transparency to crypto asset transactions. By introducing this reporting framework, Hong Kong aims to implement automatic information exchange on crypto-related activities with other participating jurisdictions starting from 2029, following a reciprocal model.
Targeting Cross-Border Tax Evasion with Crypto Regulation
One of the main goals of this initiative is to combat cross-border tax evasion using cryptocurrencies and digital assets. Under the revised framework, crypto exchanges and other service providers in Hong Kong will be required to collect, verify, and report tax-relevant information on their users’ crypto asset transactions.
The government intends to finalize the necessary legislative changes by 2028, allowing sufficient time for industry players to adapt their systems and procedures to comply with international requirements.
Global Cooperation and Compliance
By adopting CARF and updating the CRS, Hong Kong joins a growing list of jurisdictions that are working together to improve financial transparency in the crypto space. These reforms will ensure that the city remains compliant with international standards, while also protecting its reputation as a leading global financial hub.
The government is inviting feedback from stakeholders, including crypto businesses, tax professionals, and the general public, as part of the consultation process.
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