Hong Kong law makes crypto firms report client data from 2027
Why it matters
If you serve Hong Kong clients through a crypto platform, tax offices abroad will soon see what they hold. Expect onboarding to ask for tax residency and ID numbers, just as banks already do.
Post to XThe short version
Hong Kong's lawmakers passed a law on 4 November that makes crypto trading firms collect customers' names, addresses, ID numbers and the countries where they pay tax from 2027, along with records of their trades. From 2028, Hong Kong's tax office will swap that information with tax offices in other countries to catch people dodging tax.
Hong Kong's Legislative Council passed the bill on 4 November, the government said. It brings in the OECD's Crypto-Asset Reporting Framework (CARF), a shared global rulebook for reporting crypto to tax offices.
Here's what changes. From 2027, crypto exchanges and similar firms must collect customer details, according to the government. CoinDesk reports this covers names, addresses, tax residency and ID numbers, plus records of buying, selling, swapping tokens and sending coins to outside wallets.
From 2028, the Inland Revenue Department will swap that data with partner countries, the government said. The swaps go both ways and the data stays confidential.
There's a second part. Updated rules for ordinary financial accounts, which now cover digital financial products, take effect in 2028, with swaps starting in 2029. Hong Kong has shared bank account data with other tax offices every year since 2018.
Christopher Hui, the city's financial services secretary, said the change supports global efforts against cross-border tax evasion. The tax office will publish guidance and has set up a team to answer industry questions.
Where this comes from
Written with AI from the sources above and checked against them before publishing. Here's how we work. This is news, not financial advice. Spotted a mistake? Tell us.