Tax-residency reporting rules for crypto platforms are under review as Hong Kong prepares regulated stablecoin launches and advances separate licensing plans for virtual asset advisory and management services.
Hong Kong is weighing new tax-reporting rules for crypto platforms as it prepares for the launch of its first regulated stablecoins in mid-to-late 2026. Lawmakers are reviewing a Crypto-Asset Reporting Framework bill that would require licensed crypto exchanges and service providers to identify reportable users, collect and verify tax-residency documents, register with the government and file with the tax department by January 31 each year. The rules are set to begin on January 1, 2027, with the first information exchange in 2028. The proposal follows the structure of a related tax-information-sharing law passed on June 17 and, if implemented, would bring crypto activity into the tax reporting system for the first time. Separately, the HKMA has granted stablecoin licenses to the Hongkong and Shanghai Banking Corporation Limited and Anchorpoint Financial Limited, a joint venture backed by Standard Chartered, Hong Kong Telecom, and Animoca Brands. The two were selected from 36 applicants and plan Hong Kong dollar-linked stablecoins, with HSBC saying it intends to link its token to the PayMe mobile app. Authorities have also completed a consultation on separate licenses for firms providing virtual asset advisory and management services, including proposed capital thresholds depending on whether client assets are held.