Hong Kong forces crypto providers to track customer trades

Hong Kong's Legislative Council passed a crypto tax-information reporting bill on Nov. 4, requiring covered providers to begin collecting information in 2027 before the Inland Revenue Department starts exchanging it with partner jurisdictions in 2028.The department's implementation background specifies Jan. 1, 2027, for the Crypto-Asset Reporting Framework (CARF). Providers collect and report information to the tax authority, and the department conducts the international exchanges.The first collection year comes before the cross-border sharing date for covered firms.CARF establishes due diligence and annual reporting requirements for crypto-asset service providers. It concerns tax transparency, with providers gathering information that tax authorities can use, rather than setting an individual user's tax bill.The bill also implements the amended Common Reporting Standard (CRS) for financial account information. The government says that the revised standard takes effect in 2028, with exchanges starting in 2029. Its schedule is separate from CARF's 2027 collection and 2028 exchange timetable.Collection comes before exchangeOne bill, two reporting calendars. Follow the information fro...