The Hong Kong Special Administrative Region government has initiated public consultation on introducing a new framework for reporting crypto assets. This move aims to enhance international tax cooperation and prevent cross-border tax evasion. Christopher Hui, Secretary for Financial Services and the Treasury, emphasized Hong Kong’s commitment to ensuring tax transparency in line with global standards. To implement this, the government plans to amend the Inland Revenue Ordinance (Chapter 112) and update the Common Reporting Standard. These measures are seen as crucial for strengthening Hong Kong’s position as an international financial and business hub. The legislative amendments are expected to be completed by next year, enabling automatic sharing of crypto asset tax information with partner jurisdictions starting in 2028, with the updated reporting standards taking effect in 2029. Hong Kong will adopt reciprocity principles in information exchange and ensure partner countries meet data privacy and security requirements. Amid the rising popularity of cryptocurrencies and digital assets, governments worldwide are tightening financial oversight and tax reporting of these assets. Hong Kong’s initiative aligns with this global trend to increase transparency and combat illicit activities, thereby enhancing trust among international partners and reinforcing the integrity and stability of its financial market. While the new system may introduce some complexities in the crypto market, it is expected to improve Hong Kong’s tax policies and financial supervision, ultimately providing a safer environment for long-term investment.
Source: binance
