Hong Kong to Strengthen Tax Oversight of Crypto Assets Including BTC and ETH, Task Force Established

Odaily reports: In line with the global trend of strengthening tax oversight of digital assets and combating cross-border tax evasion, crypto-asset reporting will be implemented in Hong Kong SAR, China starting in 2027. Under general understanding, commonly traded assets in the global market such as Bitcoin, Ether, and Solana will all be included. Joseph Chan Ho-lim, Under Secretary for Financial Services and the Treasury of Hong Kong, revealed that to ensure the effective implementation of the Crypto-Asset Reporting Framework, a series of arrangements will be introduced, including mandating reporting crypto-asset service providers with a reporting nexus to Hong Kong to register with the tax authorities, and requiring relevant service providers to maintain due diligence records. A dedicated task force has already been established to provide technical support and answer inquiries for the industry.

It is understood that the crypto industry is focused on at least two key aspects: first, the areas that the tax authorities' guidelines will cover, particularly whether the scope of "covered service providers" will extend to custody, brokerage, and over-the-counter trading; second, the list of the first batch of exchange partners, which is believed to directly determine which countries' tax authorities will be able to see transaction data on Hong Kong platforms after 2028. (Caijing Magazine)