Hong Kong establishes a dedicated task force to provide crypto-asset reporting and tax department registration answers to queries and technical support

Odaily reports: Hong Kong's Under Secretary for Financial Services and the Treasury, Joseph Chan Ho-lim, revealed that in response to the global trend of strengthening tax regulation on digital assets and combating cross-border tax evasion, crypto-asset reporting will be implemented in the Hong Kong SAR of China starting in 2027. Under common understanding, Bitcoin, Ether, Solana, and other assets commonly seen in the global market will all be included. 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 department, and requiring relevant service providers to maintain due diligence records. A dedicated task force has now been established to provide technical support and answer queries for the industry.

It is understood that the crypto industry is focused on at least two key aspects: first, the areas that the tax department's relevant 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)