The Legislative Council passed a bill amending the crypto asset declaration framework to be implemented in Hong Kong starting next year

Zhitong Finance App learned that on November 4, the HKSAR Government welcomed the Legislative Council's passage of the “Taxation (Amendment) (Crypto Asset Reporting Framework and Revised Common Reporting Standards) Bill 2026” to implement the latest revisions to the crypto asset reporting framework and common reporting standards formulated by the Organisation for Economic Cooperation and Development (OECD) in Hong Kong. The crypto asset declaration framework will be implemented in Hong Kong starting next year. Relevant service providers will then be required to collect the information specified under the framework for the Inland Revenue Department to exchange with partner tax jurisdictions starting 2028. The revised common reporting standards will also be implemented in 2028, and the Inland Revenue Department will automatically exchange financial account information with suitable partners in accordance with the new standards from 2029. Hong Kong will exchange data in accordance with the principle of reciprocity and on the premise of ensuring data confidentiality and security.

In response to the rapid development of the digital asset market in recent years, the OECD announced a crypto asset declaration framework in 2023, which allows partner tax jurisdictions to automatically exchange tax information related to crypto asset transactions every year and revise common reporting standards to cover digital financial products and optimize reporting and due diligence.

The Secretary for Financial Services and the Treasury of Hong Kong, Mr Hui Ching-yu, said, “Hong Kong has always supported international efforts to enhance tax transparency and combat cross-border tax evasion. Implementing the latest international standards for automatic exchange of tax information is critical to maintaining Hong Kong's reputation as an international financial and commercial center. Being in line with the latest international standards will give crypto asset service providers, financial institutions and digital asset users more confidence to operate and invest in Hong Kong for the long term.”

To help the industry adapt to the new regulations and improve tax clarity, the Inland Revenue Department will issue relevant guidelines and set up a task force to provide technical support and answer enquiries to the industry. Since 2018, Hong Kong has automatically exchanged financial account data with partner tax jurisdictions every year in accordance with the joint reporting standards set by the OECD to assist relevant tax authorities to detect and combat cross-border tax evasion.