EddieJayonCrypto
17 Dec 24
Hong Kong plans to adopt a global crypto tax reporting framework by 2028, expanding the Common Reporting Standard (CRS) to cover crypto asset transactions. This initiative aims to improve transparency and combat cross-border tax evasion. Legislative amendments to align with the framework are expecte...
The Hong Kong government has reaffirmed its intention to adopt a global crypto tax reporting framework by 2028, expanding the Common Reporting Standard (CRS) to cover crypto asset transactions. This decision followed recent discussions with the Organization for Economic Cooperation and Development (OECD) Global Forum on Transparency and Exchange of Tax Information. The framework, introduced in June 2023, establishes an automated system for sharing crypto account data across tax jurisdictions, aiming to improve transparency and curb cross-border tax evasion.Legislative amendments to align with the framework are expected to be completed by 2026, with the first automatic exchange of crypto-related information with participating jurisdictions set for 2028. The move reinforces Hong Kong's status as a leading crypto-friendly hub and reflects its commitment to international tax cooperation. Secretary for Financial Services and the Treasury Christopher Hui highlighted the initiative’s significance, underscoring Hong Kong’s dedication to international tax cooperation. He emphasized that this step is vital to maintaining the city’s status as a global financial and business hub while reinforcing its responsible approach to tax governance.The move is part of Hong Kong’s broader efforts to solidify its status as a leading crypto-friendly hub. Authorities have rolled out initiatives such as proposed tax breaks for hedge funds and private equity firms to attract global investors. Additionally, a stablecoin regulation bill published earlier this month outlines guidelines for issuers and marketers, reinforcing Hong Kong’s push for regulatory clarity in the digital asset space.Posted In: Hong Kong, Featured, Regulation, TaxesAuthor OLUWAPELUMI ADEJUMOJournalist at CryptoSlate