Hong Kong Crypto Exchanges Must Report Customer Transactions to Tax Authorities

Hong Kong passes law requiring crypto exchanges to report customer transactions to tax authorities

Hong Kong’s Legislative Council has passed a new law that will require cryptocurrency exchanges and other covered digital asset service providers to collect customer and transaction information for tax reporting, with the data set to be shared with tax authorities in participating jurisdictions.

The legislation—titled the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026—aligns Hong Kong’s rules with the OECD’s Crypto-Asset Reporting Framework (CARF), a global standard designed to improve tax transparency for crypto activity.

According to the government, the rules will take effect on January 1, 2027. The first automatic exchanges of information between Hong Kong’s Inland Revenue Department (IRD) and overseas tax authorities are scheduled to begin in 2028.

The reporting scope is broad, covering key types of crypto activity that can be relevant for tax compliance. This includes cryptocurrency purchases and sales, crypto-to-crypto swaps, and transfers to external wallets.

Under the framework, service providers will be required to gather customer details and maintain transaction records so the IRD can share customer information and annual transaction totals with tax authorities in participating jurisdictions where those customers are tax residents.

The move builds on Hong Kong’s recent approach to regulating digital assets. The city introduced a licensing regime for crypto exchanges in 2023, and the new reporting requirements add a tax information layer that extends beyond domestic oversight to international cooperation.

• Data collection begins: 2027
• Cross-border sharing begins: 2028
• Covered activity: fiat trades, token swaps, and transfers including withdrawals to external wallets
• Framework: OECD CARF and an amended Common Reporting Standard

By adopting CARF, Hong Kong is joining a wider push by jurisdictions to standardize how crypto transactions are reported for tax purposes, particularly where crypto activity crosses borders and traditional financial reporting rules may not fully capture it.