Hong Kong has opened a public consultation to implement the Organisation for Economic Cooperation and Development (OECD)’s Crypto-Asset Reporting Framework (CARF) and make adjustments to the Common Reporting Standard (CRS).
According to a press release on December 9, this initiative seeks to align with international standards for tax information sharing and curb overseas tax evasion.
Since 2018, local authorities have participated in the automatic exchange of information on financial accounts under the CRS protocol.
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The plan is to update the Inland Revenue Ordinance (Cap. 112) by introducing both the CARF and changes to the CRS. The steps will proceed in several phases, with legislation targeted for completion in 2026.
Automatic reporting for crypto assets is set to launch with eligible partners starting in 2028, while CRS amendments are scheduled to take effect in 2029.
The proposal also calls for stricter rules, such as mandatory registration with financial institutions and higher penalties, to strengthen monitoring and enforcement. These changes are meant to help Hong Kong maintain its standing in future OECD peer reviews and safeguard its position as a global hub for business and finance.
The consultation paper describes the CARF and CRS provisions, including details on reporting approaches, record storage, and sanction levels.
Stakeholders and the public can submit feedback before February 6, 2026, by sending responses by mail or email to the Financial Services and the Treasury Bureau.
The Financial Conduct Authority (FCA) recently invited feedback from cryptocurrency businesses on a set of proposed updates to investment rules. What do the proposals include? Read the full story.
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