Hong Kong’s Legislative Council approved the Inland Revenue Amendment Bill 2026 on November 4, implementing the OECD’s Crypto-Asset Reporting Framework, or CARF, and the latest amendments to the Common Reporting Standard, or CRS. Relevant crypto-asset service providers will begin collecting specified user, taxpayer and transaction information in 2027, enabling Hong Kong to start annual automatic CARF exchanges with partner jurisdictions in 2028. The amended CRS will take effect in 2028, with exchanges beginning in 2029, extending coverage to digital financial products. Existing rules require Hong Kong-connected providers, including exchanges, brokers, dealers and certain crypto-ATM operators, to register, conduct customer due diligence and report information on crypto-fiat trades, crypto-asset exchanges and certain transfers to external wallets. Mainland China is not participating in CARF and will therefore be excluded from the new exchanges for now, according to Wu Blockchain founder Colin Wu. Wu said mainland taxpayers face a 20% tax rate on crypto trading gains even when they are in Hong Kong, while Hong Kong taxpayers pay no tax on profits from long-term investing or occasional trading. He said mainland authorities have not begun enforcement in this area but may proceed in stages, potentially including retrospective reviews. Hong Kong Financial Services and the Treasury Secretary Christopher Hui said the alignment would reinforce confidence among crypto-asset service providers, while the Inland Revenue Department has formed a dedicated team to guide the industry. The move follows similar steps by Singapore, South Korea, Japan and Australia and is intended to improve tax transparency, deter cross-border evasion and support Hong Kong’s ambition to become a leading digital-asset hub without creating a new crypto tax or changing underlying tax liabilities.