Hong Kong Approves Crypto Tax Reporting Law, Sets 2027 Data Collection Start

Hong Kong lawmakers approved a bill on November 4 requiring crypto service providers to report customer transaction information. The new rules will require businesses to begin collecting the data in 2027.

The law adopts the OECD’s Crypto-Asset Reporting Framework and updates the Common Reporting Standard. Hong Kong plans to begin exchanging crypto-related tax information with partner jurisdictions in 2028.

Hong Kong Sets Crypto Reporting Timeline

Under the new rules, relevant crypto service providers must begin collecting specified customer information in 2027. The Inland Revenue Department will use those records for international exchanges starting in 2028.

The revised Common Reporting Standard will also take effect in 2028, although automatic exchanges under its updated requirements will begin in 2029.

These exchanges will operate reciprocally, subject to data protection and confidentiality requirements. The Inland Revenue Department will also provide guidance and technical support to affected businesses.

Hong Kong Expands Crypto Oversight

Financial Services Secretary Christopher Hui said international tax transparency remains important to Hong Kong’s financial reputation.

“Implementing the latest international standards for automatic exchange of information in tax matters is crucial to maintaining Hong Kong’s reputation as an international financial and commercial center,” Hui stated.

The legislation adds to Hong Kong’s broader virtual asset regulatory efforts. In October, Hui outlined proposed licensing rules covering crypto trading, custody, advisory and management services.

Separately, a September agreement between the Securities and Futures Commission and the accounting regulator expanded cooperation on crypto company audits and financial reporting.