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Hong Kong’s Legislative Council passed the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026 on Nov. 4, 2026. The legislation mandates that covered crypto-asset service providers begin collecting customer trade information under the Crypto-Asset Reporting Framework (CARF) on Jan. 1, 2027.
The Inland Revenue Department (IRD) will utilize this collected data to commence information exchanges with partner jurisdictions in 2028. The bill simultaneously implements the amended Common Reporting Standard (CRS) for financial account information, which takes effect on Jan. 1, 2028, with international exchanges under that standard starting in 2029.
Two distinct reporting calendars
The bill establishes separate timetables for the two frameworks. CARF requires covered providers to collect information in 2027, while the IRD conducts international exchanges in 2028. The amended CRS operates on a different schedule, becoming effective in 2028 with exchanges beginning in 2029.
CARF is a tax-information transparency framework that mandates due diligence and annual reporting from crypto-asset service providers. The framework requires providers to gather information that tax authorities can use for transparency purposes, rather than determining an individual user’s specific tax bill. The IRD’s implementation background specifies Jan. 1, 2027, for CARF and Jan. 1, 2028, for the amended CRS.
Provider obligations and data scope
The IRD defines reporting providers as businesses carrying out customer exchanges between crypto-assets and fiat currencies, or between crypto-assets. This includes businesses acting as counterparties or intermediaries and those operating trading platforms. A provider’s specific obligations depend on its connection to a jurisdiction under the framework’s nexus rules.
Reportable users and relevant controlling persons of entity users are defined by their tax residence in reportable jurisdictions. Providers must identify these users or controlling persons before preparing information for the annual reporting process. Required data includes identifying details, tax-residence information, and aggregated transaction information.
Hong Kong states that international exchanges will be reciprocal and subject to confidentiality and security safeguards. The IRD has established a dedicated team to provide technical support and answer industry inquiries. The department will issue guidance, develop a CARF reporting portal, and publish the data schema that defines the reporting format. These materials will outline the reporting process for providers preparing to collect data in 2027.
Frequently Asked Questions
When do covered providers start collecting CARF information?
Covered providers must begin collecting CARF information on Jan. 1, 2027. The Inland Revenue Department will start exchanging this information with partner jurisdictions in 2028.
What is the effective date for the amended Common Reporting Standard?
The amended CRS takes effect on Jan. 1, 2028. International exchanges under the amended CRS will begin in 2029, separate from the CARF timetable.
