CoinDesk
Hong Kong has passed a law requiring crypto exchanges and other covered providers to collect customer and transaction data from 2027. The first automatic exchanges with overseas tax authorities are set to begin in 2028, for customers who are tax residents in participating jurisdictions.
Why it matters
The law adopts the OECD’s Crypto-Asset Reporting Framework, designed to help governments identify transactions that might otherwise go unreported. Covered firms must record customer names, addresses, tax residency and identification numbers, along with crypto purchases, sales, swaps and transfers to external wallets. The Inland Revenue Department will share customer details and annual transaction totals with relevant tax authorities. The information will not be made public.
Hong Kong already requires crypto exchange licensing, introduced in 2023. The new reporting rules extend firms’ obligations beyond licensing and put customer activity within a formal cross-border tax information system. Christopher Hui, the financial services and treasury secretary, said the measure would help combat cross-border tax evasion.
Market impact
For exchanges and brokers, the rules mean new data collection and reporting duties ahead of the 2027 start date. The Inland Revenue Department says it will issue guidance and provide technical support to help firms comply.
Hong Kong has shared financial account information with overseas tax authorities under the OECD’s Common Reporting Standard since 2018. Separate amendments extending that system to more digital financial products take effect in 2028, with exchanges of that information beginning in 2029.
Frequently asked questions
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When do Hong Kong’s crypto reporting rules take effect?
Covered providers must collect customer and transaction information from 2027. Automatic exchanges with overseas tax authorities are scheduled to begin in 2028.
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What customer information must covered crypto firms record?
Firms must record customers’ names, addresses, tax residency and identification numbers, along with transaction records.
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Which crypto transactions fall under the reporting rules?
The rules cover purchases, sales, crypto-to-crypto swaps and transfers to external wallets.
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Will Hong Kong publish customers’ crypto transaction information?
No. The information will be shared with tax authorities in participating jurisdictions where customers are tax residents, and will not be made public.
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What framework does Hong Kong’s law adopt?
The law adopts the OECD’s Crypto-Asset Reporting Framework, which is designed to help governments identify crypto transactions that may otherwise go unreported.
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