Hong Kong’s Legislative Council approved legislation on 4 November 2026 that obliges certain providers of digital-asset services to gather and retain detailed records of customer activity.
The measure, formally titled the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework & Amended Common Reporting Standard) Bill 2026, incorporates two international standards developed by the Organisation for Economic Co-operation and Development into local law.
The Crypto-Asset Reporting Framework, finalised by the OECD in 2023, requires entities that facilitate exchanges of digital assets for fiat currency, exchanges between different digital assets, or transfers of those assets to collect identifying and transaction data.
Under the Hong Kong rules, these obligations apply to reporting crypto-asset service providers that meet defined connection tests with the territory—such as tax residence, incorporation, management, or maintenance of a place of business.
Providers must obtain self-certifications of tax residence from customers, keep supporting records for six years, and register on a dedicated portal operated by the Inland Revenue Department regardless of whether they have reportable information in a given year.
Collection of the prescribed information begins on 1 January 2027.
The Inland Revenue Department is then scheduled to begin automatic, reciprocal exchanges of that information with partner tax authorities in 2028, subject to safeguards for confidentiality and data security.
Parallel amendments to the existing Common Reporting Standard expand the range of reportable assets to include certain digital money products, derivatives linked to crypto-assets, and investment entities that hold such assets. Those CRS changes take effect on 1 January 2028, with the first exchanges under the revised standard expected in 2029.
Secretary for Financial Services and the Treasury Christopher Hui stated that alignment with the latest automatic-exchange standards is essential for preserving Hong Kong’s standing as an international financial and commercial centre.
He added that the measures are expected to strengthen the confidence of service providers, financial institutions, and users who operate or invest in the territory over the long term.
The government has indicated that the Inland Revenue Department will publish practical guidance and has established a dedicated team to offer technical support and answer industry questions.
Hong Kong has already participated in annual automatic exchanges of financial-account information under the Common Reporting Standard since 2018.
The new legislation extends a comparable transparency regime to the digital-asset sector, which the OECD designed to address risks of cross-border tax non-compliance arising from the rapid growth of those markets.
The framework defines relevant crypto-assets broadly as digital representations of value that rely on cryptographically secured distributed ledgers, while excluding central-bank digital currencies, specified electronic-money products, and assets that providers adequately determine cannot be used for payment or investment purposes.
Providers that fail to register, perform due diligence, report accurately, or notify the authorities of errors face administrative and criminal penalties. The precise fine levels and calculation methods for ongoing non-compliance are set out in the amending ordinance. The legislation does not introduce a new tax on digital assets; it instead ensures that existing tax rules can be applied more effectively through better information flows.
