The Hong Kong government has recently announced its commitment to implementing a global crypto tax reporting framework by 2028, following discussions with the OECD Global Forum on Transparency and Exchange of Tax Information. This framework, introduced in June 2023, will extend the existing Common Reporting Standard (CRS) to include crypto asset transactions, allowing for the automatic sharing of crypto account data between tax jurisdictions to enhance transparency and combat cross-border tax evasion.
Legislative amendments are currently being prepared in Hong Kong to align with this framework, with the goal of completing the process by 2026. The first automatic exchange of crypto-related information with participating jurisdictions is set to take place in 2028, enabling tax authorities worldwide to better enforce global tax compliance.
Since 2018, Hong Kong has been sharing financial account information with tax partners on an annual basis to support assessments and detect evasion. Secretary for Financial Services and the Treasury, Christopher Hui, emphasized the importance of this initiative in maintaining Hong Kong’s reputation as an international financial and business center, highlighting the city’s commitment to international tax cooperation.
This move is part of Hong Kong’s broader strategy to position itself as a leading crypto-friendly hub. In addition to the implementation of the global crypto tax reporting framework, the government has introduced initiatives such as proposed tax incentives for hedge funds and private equity firms to attract global investors. Furthermore, a stablecoin regulation bill recently published provides guidelines for issuers and marketers, demonstrating Hong Kong’s efforts to establish regulatory clarity in the digital asset sector.
By taking these proactive measures, Hong Kong aims to solidify its standing as a global financial and business hub, while promoting responsible tax governance and fostering international cooperation in the realm of taxation.