Hong Kong plans to introduce the Crypto-Asset Declaration Framework (Declaration Framework) by 2026, aiming to enhance international tax transparency and combat cross-border tax evasion.
Hong Kong Crypto Asset Report Framework Plan:
The Government has informed the Organization for Economic Co-operation and Development (OECD) Global Forum on Transparency and Effective Exchange of Information in Tax Matters (Global Forum) that Hong Kong is committed to implementing the Crypto-Asset Framework on or before 2026 . The government would begin the first automatic exchange of information with relevant tax jurisdictions under the reporting framework starting in 2028.
The OECD had initially announced a reporting framework in June 2023 to uphold global tax transparency, thanks to the growing crypto adoption in all diversified forms. In fact, a recent report revealed that the market cap of Asia’s first batch of Virtual Asset spot ETFs listed in Hong Kong has increased by 70% with average daily turnover doubling since its release in April.
According to local media reports, this framework will work in alignment with the present Common Reporting Standard for the Automatic Exchange of Financial Account Information in Tax Matters, and introduce a similar method to automatically exchange crypto-asset accounts and transactions on an annual basis in tax jurisdictions where crypto-asset users or controllers are tax residents.
The Global Forum has invited all tax jurisdictions (including Hong Kong) focusing on crypto-asset industries and deemed them as directly relevant to the reporting framework. This joint effort to implement the reporting framework, will also ensure a fair execution of the reporting framework globally.
Secretary for Financial Services and the Treasury, Mr Hui Ching-yu, said: “The Reporting Framework is the latest global standard for tax transparency. Implementing the Reporting Framework is vital to maintaining Hong Kong’s reputation as an international financial and business center and reflects Hong Kong’s reputation as a responsible tax jurisdiction.”
Hong Kong is also planning to implement the new crypto asset framework with partners that abide by the data confidentiality and security norms.
Hui Ching-yu added, “The government will listen to the views of relevant stakeholders and the public when preparing the necessary legislative amendments.”
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Source: https://www.cryptonewsz.com/hong-kong-enact-crypto-report-framework-2026/