Catenaa, Friday, December 12, 2025-Hong Kong has launched a public consultation on implementing the OECD’s Crypto-Asset Reporting Framework (CARF) and amended Common Reporting Standard (CRS), aiming to begin automatic cross-border exchange of crypto tax information by 2028.
Legislative amendments are expected in 2026, expanding existing CRS infrastructure to cover digital asset transactions. Authorities plan mandatory registration for financial institutions, enhanced penalties, and stronger enforcement to prevent tax evasion through crypto.
The framework will operate reciprocally with jurisdictions meeting data security standards.
Hong Kong has exchanged financial account information automatically under CRS since 2018.
CARF extends these practices to crypto, applying similar transparency requirements to billions of dollars in trading across licensed exchanges.
The move responds to the OECD’s peer review assessing Hong Kong’s compliance with global tax transparency standards.
The consultation occurs amid Hong Kong’s push for fintech and digital-asset innovation under the “Fintech 2030” strategy, which emphasizes AI, tokenization, and resilience.
Licensed crypto exchanges will soon connect with global order books, expanding liquidity for local platforms. HashKey Holdings is advancing toward becoming the city’s first listed crypto exchange, representing over 75% of onshore trading.
Mainland China’s renewed crypto restrictions in November, including stablecoin crackdowns, have added complexity. Hong Kong-listed crypto firms experienced losses after Beijing flagged regulatory risks, influencing local policy and enforcement strategies.
Public feedback on the consultation paper is open until February 6, 2026, via the Financial Services and Treasury Bureau.
