The Hong Kong government has recently confirmed its commitment to implementing a global crypto tax reporting framework by 2028. This decision comes after productive discussions with the OECD Global Forum on Transparency and Exchange of Tax Information.
The new framework, introduced in June 2023, aims to extend the existing Common Reporting Standard (CRS) to cover transactions involving crypto assets. By establishing an automated system for sharing crypto account data among tax jurisdictions where users are based, the initiative seeks to enhance transparency and combat cross-border tax evasion effectively.
To align with this framework, Hong Kong authorities are in the process of preparing legislative amendments, which are expected to be completed by 2026. Once enacted, the first automatic exchange of crypto-related information with participating jurisdictions is scheduled to take place in 2028. This shared data will enable tax authorities worldwide to enforce global tax compliance more efficiently.
Since 2018, Hong Kong has been sharing financial account information with tax partners annually to support assessments and detect instances of evasion. Secretary for Financial Services and the Treasury, Christopher Hui, emphasized the importance of this initiative in upholding Hong Kong’s reputation as a global financial and business hub, as well as demonstrating the city’s commitment to international tax cooperation.
Hui stated, “The implementation is crucial for maintaining Hong Kong’s reputation as an international financial and business centre. It also reflects Hong Kong’s ongoing efforts in promoting international tax cooperation as a responsible tax jurisdiction.”
This move is part of Hong Kong’s broader strategy to strengthen its position as a leading crypto-friendly hub. The government has introduced various initiatives, including proposed tax breaks for hedge funds and private equity firms, to attract global investors. Additionally, a stablecoin regulation bill recently published outlines guidelines for issuers and marketers, further emphasizing Hong Kong’s commitment to regulatory clarity in the digital asset space.