Hong Kong forces crypto providers to track customer trades
Hong Kong’s Legislative Council passed legislation implementing the Crypto-Asset Reporting Framework (CARF). Covered crypto-asset service providers must begin collecting customer identification, tax-residence and transaction information on Jan. 1, 2027; the Inland Revenue Department will start exchanging the data with partner jurisdictions in 2028. The rules apply to qualifying exchange businesses, intermediaries and trading platforms, and concern tax transparency rather than setting users’ tax bills. Hong Kong says exchanges will be reciprocal and protected by confidentiality and security safeguards. The department plans to issue guidance, create a reporting portal and publish the required data schema. The bill also implements revised financial-account reporting standards on a separate timeline: those take effect in 2028, with exchanges beginning in 2029.
