Hong Kong’s Legislative Council passed legislation on November 4, 2026, requiring crypto-asset service providers to collect detailed customer and transaction information beginning in 2027. The measure adopts the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework and updates the city’s existing Common Reporting Standard.

The Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 establishes obligations for covered businesses to gather identifying details and transaction records for submission to Hong Kong’s Inland Revenue Department. The department will then exchange the information annually with eligible partner jurisdictions on a reciprocal basis, subject to standards for data confidentiality and security.

Scope of Reporting Obligations

The framework applies to entities that facilitate cryptocurrency transactions for customers, including exchanges, brokers, dealers and certain operators of crypto ATMs. Companies with a reporting connection to Hong Kong face registration, customer due diligence, recordkeeping and reporting duties.

Reportable activity covers exchanges between cryptocurrencies and fiat currencies, trades between different crypto assets, and certain transfers involving external wallets. Service providers must obtain identifying information about reportable customers, including tax residence and taxpayer identification numbers, along with relevant transaction details.

The rules encompass both fungible and non-fungible crypto assets that can be used for payments or investments. Central bank digital currencies, specified electronic money products and certain assets that cannot be used for payments or investments fall outside the scope.

Hui added that alignment with the standards would strengthen confidence among financial institutions, crypto businesses and digital asset users considering long-term investments in the city.

Implementation Timeline and Supporting Changes

Covered service providers must begin collecting customer and transaction information from 2027. Automatic exchanges of the reported data with partner jurisdictions are scheduled to start in 2028.

Alongside the Crypto-Asset Reporting Framework, the legislation amends the Common Reporting Standard, which Hong Kong has used to exchange financial account information since 2018. The updated Common Reporting Standard takes effect in 2028, with the first exchanges under the revised rules planned for 2029.

The amendments expand coverage to certain digital financial products, including central bank digital currencies, specified electronic money products and instruments linked to cryptocurrencies. Financial institutions will encounter updated due diligence requirements and additional reporting obligations concerning account holders, controlling persons and financial accounts. Provisions aim to prevent duplicate reporting where transactions fall under both frameworks.

The Inland Revenue Department plans to publish implementation guidance and has formed a dedicated team to offer technical assistance and answer industry questions.

Path to Passage and Broader Context

The government conducted a consultation between December 2025 and February 2026, gathering input from financial institutions, professional bodies and cryptocurrency businesses. Proposed legislation was published in May and introduced to lawmakers in June before the November 4 approval.

The reporting rules form part of Hong Kong’s wider regulatory approach to digital assets. The city introduced licensing requirements for crypto exchanges in 2023. More recent measures have included plans for licensing additional virtual asset services covering dealing, custody, advisory and asset management activities, as well as efforts to expand regulated stablecoin trading and tokenized real-world assets.

The OECD published the Crypto-Asset Reporting Framework in 2023 to create a common system for participating jurisdictions to exchange information on cryptocurrency transactions involving their tax residents. Hong Kong’s adoption positions the city within this international system for improving tax transparency and addressing cross-border tax evasion.