The Hong Kong government has reaffirmed its intention to implement a global crypto tax reporting framework by 2028, according to a recent statement.
This decision followed recent discussions with the Organization for Economic Co-operation and Development (OECD) Global Forum on Transparency and Exchange of Tax Information.
The framework, introduced in June 2023, extends the existing Common Reporting Standard (CRS) to cover transactions involving crypto assets. An automated system is being set up for sharing crypto account information between tax jurisdictions where users live, with the aim of improving transparency and combating cross-border tax evasion.
Hong Kong authorities are preparing legislative changes to align with the framework, expected to be completed in 2026.
Once in effect, the first automatic exchange of crypto-related information with participating jurisdictions will take place in 2028. The shared data will enable tax authorities in various countries to effectively enforce global tax compliance.
Since 2018, the city has shared annual financial account information with tax partners to support assessments and detect evasion.
Minister of Financial Services and Ministry of Finance Christopher Hui emphasized the importance of the initiative and underlined Hong Kong’s commitment to international tax cooperation.
Hui stressed that this step is essential to maintain the city’s status as a global financial and business center while strengthening its responsible approach to fiscal management. He stated:
“The implementation is critical to maintaining Hong Kong’s reputation as an international financial and business center. It also reflects Hong Kong’s continued efforts to promote international tax cooperation as a responsible tax jurisdiction.”
The move is part of Hong Kong’s broader efforts to cement its status as a leading crypto-friendly hub. Authorities have launched initiatives such as proposed tax breaks for hedge funds and private equity firms to attract global investors.
Additionally, a bill on stablecoin regulation published earlier this month outlines guidelines for issuers and marketers, reinforcing Hong Kong’s push for clarity in digital asset regulation.