- Hong Kong begins a public consultation on new global tax transparency rules.
- Proposed changes aim to introduce crypto-asset reporting under international standards.
- The government plans legislative amendments to meet OECD requirements.
- Public feedback will guide final proposals before implementation.
The government has opened a public consultation on how Hong Kong should put the Crypto-Asset Reporting Framework into use and update rules under the Common Reporting Standard. Both sets of standards were developed by the Organisation for Economic Co-operation and Development. Officials want to gather views from the public before finalizing legislative amendments.
Hong Kong has supported global tax transparency efforts for years. Since 2018, the city has shared financial account information with partner jurisdictions every year. This process follows the Common Reporting Standard and helps tax authorities assess risks and tackle cross-border evasion. The new consultation continues this direction as digital markets expand.
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Crypto-Asset Reporting Set for Hong Kong by 2028
The growth of digital assets has opened up new means for the management of wealth and cross-border activity. The OECD has therefore developed the Crypto-Asset Reporting Framework in 2023 to address this issue. The rules include the required annual exchange of tax information regarding cryptoasset activity. The OECD has also made modifications to the CRS in order to include new digital financial assets in the reporting and due diligence obligations.
The government intends to update the Inland Revenue Ordinance to align with the new rules. The Secretary for Financial Services and the Treasury, Christopher Hui, noted that the changes will emphasize the Hong Kong government’s commitment to global cooperation.
The government finds it necessary to maintain Hong Kong’s reputation as a reliable financial center. The target is to complete the legislation in the next year. The aim is to begin the exchange of the tax information of the respective cryptos with relevant countries in 2028 and implement the new exchange rules according to the CRS obligations in 2029.
Hong Kong Strengthens Rules Ahead of OECD Review
Hong Kong is also undergoing an assessment by the OECD. The organization started its second round of reviews in 2024 to evaluate how the city is handling the current reporting system. Based on the OECD’s evaluation, the government has now recommended compulsory registration for financial institutions.
The new measure also incorporates tougher fines and an effective scheme to ensure compliance. The move is to encourage a positive assessment in global rankings and to maintain the reputation of Hong Kong.
The consultation paper is available at the website of the Financial Services and the Treasury Bureau. It describes the new frameworks and reporting and compliance obligations. The public has the opportunity to give their views through post and email until the 6th of February in the year 2026.
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