Hong Kong Approves Crypto Tax Reporting Law, Putting Exchanges Under Global Data Sharing Rules

Hong Kong lawmakers have approved new rules that make crypto trading platforms gather detailed customer and transaction records for tax purposes. Collection starts in 2027, and the city will begin passing that information to foreign tax agencies in 2028.

What Crypto Exchanges Must Collect

The law follows the OECD’s Crypto-Asset Reporting Framework, a global standard published in October 2022 to expose crypto activity that goes untaxed. Covered exchanges and brokers must keep each client’s name, address, tax residency and ID number, together with logs of purchases, sales and transfers. Token swaps and withdrawals to outside wallets count too. The Inland Revenue Department will hand over customer details and yearly transaction totals to partner jurisdictions where those clients pay taxes.

Government Reasoning and Support

Financial services secretary Christopher Hui says the measures will help fight cross border tax evasion. The tax department plans to publish guidance and offer technical help so firms can comply.

How This Fits Hong Kong’s Wider Rules

The city began licensing crypto exchanges in 2023 and has swapped bank account data with other countries under the OECD’s Common Reporting Standard since 2018. Further changes covering more digital financial products start in 2028, with those exchanges following in 2029.