Hong Kong Prepares Legislative Proposal for Crypto Asset Reporting

Hong Kong government is designing a comprehensive regulatory framework that will change how crypto assets are reported and monitored in the jurisdiction. This legislative proposal will be brought to the Legislative Council in 2026, marking a significant step in Hong Kong’s efforts to align regulatory standards with the international community.

Policy Steps Toward International Tax Transparency

The Hong Kong Financial Services and Treasury Bureau will present a detailed summary of this regulatory initiative to the Legislative Council Finance Committee. Senior officials from the department will explain the technical details of the proposed legislation.

The main goal of the regulations being developed is to create greater tax transparency on a global level. By implementing consistent reporting standards, Hong Kong aims to automatically exchange tax information related to crypto asset transactions with other tax jurisdictions.

OECD Standard Reporting Framework and Target Implementation 2028

The adopted reporting standards are based on guidelines developed by the Organization for Economic Co-operation and Development (OECD). These standards have become a global reference for cross-border financial reporting and are designed to combat cross-border tax avoidance practices.

The implementation phase will be carried out gradually, with full compliance targeted by 2028. This preparatory period provides time for data exchange and necessary administrative system adjustments.

Consultation Process and Regulatory Development

Before official legislation is submitted, the Hong Kong government is gathering public feedback on this proposal. This consultation phase is important to ensure that the resulting regulatory framework can be effectively implemented and to minimize unnecessary burdens on industry stakeholders.

Hong Kong’s legislative approach reflects a broader global trend where regulators are increasingly focused on digital asset transparency and international tax compliance. By leading the adoption of OECD reporting standards for crypto assets, Hong Kong positions itself as a responsible and transparent financial hub within the global blockchain ecosystem.