Hong Kong Opens Public Consultation on Crypto Tax Reporting Framework

The Hong Kong government has initiated a public consultation to adopt the OECD's Crypto-Asset Reporting Framework (CARF) and update the Common Reporting Standard (CRS). This move aims to integrate cryptocurrencies into global tax-transparency systems, facilitating automatic exchange of crypto-related tax data between Hong Kong and partner jurisdictions from 2028.

Full implementation of CARF expected in 2029.
Consultation period open until February 6, 2026.

Strengthening Compliance and Information Sharing

Christopher Hui emphasized reinforcing Hong Kong's commitment to international tax cooperation.
Proposals include stricter reporting obligations for financial institutions and higher penalties for non-compliance.
The OECD peer review is ongoing to assess Hong Kong's CRS framework.

Crypto Market Growth in Hong Kong

HashKey Holdings, a licensed crypto platform, has filed for an IPO set for December 17.
If successful, HashKey will be Hong Kong's first publicly traded crypto exchange.
Bitkub, a Thai exchange, is considering a $200 million funding round with plans for a Hong Kong IPO by 2026 due to stronger regulations.
Hong Kong's securities regulator plans to relax restrictions, allowing regulated platforms to share global order books with overseas affiliates, enhancing market liquidity.

These developments reflect Hong Kong's efforts to maintain its status as a well-regulated international finance hub and adapt to the growing momentum in its crypto market.