On 2 November 2026, the Legislative Council Secretariat announced that LegCo will meet on Wednesday, 4 November 2026 at 11am and resume the Second Reading debate on the Inland Revenue (Amendment) (Crypto-Asset Reporting Framework and Amended Common Reporting Standard) Bill 2026. This note summarises public sources — general information only, not legal or tax advice. The Bill remains subject to LegCo scrutiny; final rules follow the enacted text.
Key point: subject to the necessary domestic legislation being in place in 2026, the Government has committed to the first automatic exchange of tax information on crypto-asset transactions under CARF in 2028. Subject to passage, CARF-related amendments are proposed to take effect from 1 January 2027, and amended CRS from 1 January 2028 — confirm against the enacted Ordinance.
Legislative timetable (public)
- The Bill was gazetted on 22 May 2026 and introduced for First Reading on 3 June 2026.
- A Bills Committee considered it in June and September 2026.
- Per the GIA / IRD press release of 2 November 2026, the Second Reading debate resumes on 4 November 2026. If supported, the Bill proceeds to the committee of the whole Council and then Third Reading.
What is CARF?
The Crypto-Asset Reporting Framework (CARF) is an OECD tax-transparency standard (2023) for automatic exchange of information on crypto-asset transactions. Reporting crypto-asset service providers (RCASPs) that meet nexus rules must perform due diligence and report required information annually to the relevant tax authority.
Per IRD materials, from the proposed commencement date, RCASPs meeting any Hong Kong nexus criterion would face registration, due diligence and reporting duties, and may engage service providers to help discharge those obligations.
Who may be an RCASP (overview)
Public OECD / IRD examples of businesses that may be RCASPs include (non-exhaustive):
- dealers buying and selling relevant crypto-assets for their own account with customers;
- operators of crypto-asset ATMs;
- crypto-asset exchanges acting as market makers;
- brokers completing client buy/sell orders in relevant crypto-assets; and
- persons or entities that subscribe relevant crypto-assets from an issuer for resale/distribution (where applicable).
Nexus rules broadly cover tax residence in Hong Kong, incorporation/organisation under Hong Kong law with legal personality or a tax-filing duty, management from Hong Kong, or a regular place of business (including a branch) in Hong Kong — apply the enacted rules to the facts.
Amended CRS highlights
The same Bill would update the Common Reporting Standard, including certain digital financial products, additional account/controlling-person data fields, and refined due diligence definitions. To limit dual reporting, RFIs that are also RCASPs would generally not need to report under amended CRS the gross proceeds already reported under CARF (with an election to report anyway). Confirm against the final text.
Practical notes for businesses
- Debate ≠ commencement — 4 November is a legislative step, not an effective date.
- Likely stakeholders — crypto platforms, brokers, ATM operators, related intermediaries, and financial institutions handling both accounts and crypto-assets should review KYC/self-certification and record-keeping workflows.
- Cross-border structures — groups or individuals trading via Hong Kong intermediaries should plan for future automatic exchange alongside CRS/FATCA calendars.
- Registration — the Bill proposes that nexus-meeting RCASPs register on IRD’s planned CARF Portal even with nil reportable data, by 31 January of the calendar year after they first meet a nexus criterion — subject to enactment.
Sources: GIA press release (2026-11-02) · IRD press release archive · IRD: Crypto-Asset Reporting Framework · IRD Bill page · 稅務局 CARF 專頁（中文） · LegCo Bills progress
Related services: Hong Kong profits tax · Accounting · Audit · Hong Kong incorporation · BVI / offshore incorporation