The bill brings Hong Kong into line with the Crypto-Asset Reporting Framework, or CARF, which the OECD introduced in 2023. CARF is a template for countries that want crypto platforms to report user activity to governments.
Under the new rules, businesses classed as reporting crypto-asset service providers, or RCASPs, must run due diligence on their customers. RCASPs are the exchanges, brokers and similar intermediaries with a connection to Hong Kong.
They must then report relevant taxpayer information to the Inland Revenue Department (IRD) every year.
There is also a registration requirement. Affected RCASPs must register with the IRD from January 1, 2027, regardless of their activity level.
The timeline
The government ran a public consultation from December 2025 to February 2026, and stakeholders broadly supported the proposals.
The bill was then gazetted on May 22, 2026. Lawmakers approved it in November.
Data collection obligations kick in on January 1, 2027. The first automatic exchanges of information with other jurisdictions are scheduled for 2028.
The bill also updates Hong Kong’s rules under the Common Reporting Standard, or CRS. That existing framework already governs how financial account information is shared internationally, and the amended provisions take effect alongside the new crypto rules.
Why Hong Kong is doing this
The legislation builds on Hong Kong’s existing international commitments on tax transparency. The government has stressed the importance of protecting the city’s global standing, particularly in light of OECD feedback from peer reviews of its tax practices.
The stated goal is to reduce the risk of tax evasion through digital assets. The government also wants to reinforce Hong Kong’s position as an international financial center while leaving room for the crypto sector to grow.
Notably, the bill does not single out any specific platforms or tokens. The rules apply broadly to any service provider operating within the jurisdiction that meets the RCASP definition.
What this means for exchanges and users
For crypto platforms with Hong Kong connections, the immediate impact is operational. They will need systems to verify customers, record transactions and file annual reports with the IRD.
The registration requirement creates a clear checkpoint. By the start of 2027, any business that qualifies as an RCASP will need to be on the IRD’s books.
For users, trades made through covered platforms from 2027 onward will feed into an annual report to the tax authority. Once automatic exchanges begin in 2028, that information may be shared with other participating jurisdictions.
None of this changes what people owe. The law is about visibility, not new levies.
