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Hong Kong’s push to develop a global digital-asset hub is entering a new phase as international tax authorities move to require greater reporting and information sharing in crypto markets. The city is moving toward adopting the OECD’s Crypto Asset Reporting Framework, or CARF, a global tax transparency regime that would require centralized crypto exchanges to collect and share transaction data with tax authorities. Crypto assets could fall under the same rigorous reporting system that already governs traditional offshore bank accounts. For Hong Kong authorities, CARF requires a delicate balance of enforcing tougher oversight without undermining its appeal as a digital asset industry hub. A crypto reality check “Crypto trading is no longer considered a fringe activity. It’s a permanent feature of global markets,” said Calix Liu, founder of Hong Kong-based crypto and tax consulting firm FinTax. “Once regulators accepted that reality, the lack of reporting rules from the early years became a serious problem.” Liu said the regulatory vacuum before 2018 paved the way for large sums of money to move without clear disclosure requirements. “The anonymous nature of crypto transactions made it easier for people to hide taxable income, which was also made easier by the lack of a reporting framework,” he said. The proposal comes as governments worldwide step up efforts to close tax gaps created by digital assets. More than 70 jurisdictions have committed to adopting CARF, with the OECD and G20 aiming to roll out global crypto reporting between 2027 and 2028. Crypto is booming in Hong Kong Hong Kong has been praised as one of the most crypto friendly cities in the world. The Crypto Friendly Cities Index awarded the city second place after Ljubljana, Slovenia in 2025. Meanwhile, the city’s blockchain application sector grew by a staggering 250% between 2022 and 2024. Over the same…

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Filed under: News - @ December 27, 2025 12:25 pm