Hong Kong’s Legislative Council has approved a new bill to integrate the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) into the city’s tax law. The measure, known as the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026, was passed on November 4 according to a government statement.
Key provisions and timeline
The new legislation gives legal backing to the roadmap detailed by the Hong Kong government in May. Under the bill, crypto asset service providers such as exchanges, brokers, dealers, and crypto ATM operators with connections to Hong Kong are required to collect user information as specified by CARF from 2027. The Hong Kong Inland Revenue Department (IRD) will begin sharing the collected data with partner jurisdictions starting in 2028.
In addition to CARF, the bill brings the OECD’s updated Common Reporting Standard (CRS) into local law. This revised CRS, which broadens reporting and due diligence requirements to include digital financial products, will come into effect in 2028, with the first exchanges of information scheduled for 2029.
Implementation of these rules comes roughly two months before the opening of the 2027 collection year. As of now, the IRD’s registration portal, reporting schema, and list of partner jurisdictions remain under development, meaning affected firms must begin system preparations before full technical details have been finalized.
Mini dictionary: Crypto-Asset Reporting Framework (CARF): A global standard developed by the OECD in 2023 to ensure automatic annual exchange of tax-relevant information related to crypto transactions across participating jurisdictions.
Scope of reporting and international cooperation
Service providers covered under the CARF mandate include exchanges, brokers, dealers, and crypto ATM operators operating in or connected to Hong Kong. The reporting requirements extend to crypto-to-fiat and crypto-to-crypto transactions, as well as transfers to external wallets. Data exchanged under this regime will be reciprocally shared with other jurisdictions, and subject to strict confidentiality and security protocols.
The IRD has indicated it will release official guidance and has formed a dedicated team to address industry queries during the transition.
| Key Event | Timeline |
|---|---|
| Begin collecting CARF-required user information | 2027 |
| Start sharing CARF data with partner jurisdictions | 2028 |
| Revised CRS due diligence and reporting starts | 2028 |
| First information exchanges under revised CRS | 2029 |
Authorities’ statements and background
Christopher Hui, Secretary for Financial Services and the Treasury, described the adoption of these standards as essential for preserving Hong Kong’s stature as an international finance and commerce center. Hui also noted that aligning with CARF and the latest CRS would bolster confidence among crypto-asset service providers, financial institutions, and digital asset users conducting business and investing in Hong Kong.
Adopting the new standards is crucial to maintaining Hong Kong’s reputation as an international financial and commercial centre. This alignment will reinforce the confidence of crypto-asset service providers, financial institutions and digital asset users in operating and making long-term investments in Hong Kong.
The bill was officially published on May 22 and introduced into the Legislative Council on June 3, following a public consultation held from December 2025 to February 2026. Since 2018, Hong Kong has already participated in cross-border financial account data exchanges with partner countries under the original CRS.
