Hong Kong’s Implementation of OECD Crypto-Asset Reporting Framework (CARF)

Hong Kong is rolling out the OECD Crypto-Asset Reporting Framework (CARF) to enhance cross-border tax transparency for digital asset transactions. The Inland Revenue Amendment Bill was gazetted in May 2026 and tabled for Legislative Council First Reading in June 2026.

The new regime takes effect on 1 January 2027 for local compliance obligations, while automatic cross-jurisdictional tax information exchange will commence in 2028. All qualifying crypto-asset service providers (RCASPs) including exchanges, dealers, crypto ATM operators and brokers must complete mandatory registration, conduct standardized client due diligence, and submit annual transaction reports.

Covered activities include fiat-crypto swaps, cross-token exchanges and crypto asset transfers. Registered firms are required to retain compliance records for six years. Penalties and administrative appeal mechanisms apply for non-compliance, false disclosure and reporting breaches. Central bank digital currencies and specified e-money products are exempted from the reporting scope.