Hong Kong: Draft legislation to implement CARF and amend CRS
The proposed bill would introduce a new reporting framework for cryptoassets and expand the existing CRS framework.
The government of Hong Kong on May 22, 2026, published legislation to implement the cryptoasset reporting framework (CARF) and amendments to the existing CRS framework.
Subject to enactment, the CARF would become effective in Hong Kong on January 1, 2027, and the amended CRS would become effective on January 1, 2028.
Proposed CARF rules
The CARF is a new tax transparency framework for the reporting and automatic exchange of information with respect to cryptoassets. Key features of the bill include:
- Definition of a "cryptoasset"
- Definition of a “reporting cryptoasset service provider” (RCASP)
- Covered transactions under CRAF
- RCASPs in Hong Kong (HKRCASPs)
- Due diligence and reporting obligations of an HKRCASP
- Administrative measures under CARF
Proposed amended CRS rules
Proposed amendments to the existing CRS framework cover:
- Expanded scope of reportable assets
- Additional reporting obligations
- Strengthened due diligence requirements
Dual-reporting relief
To avoid duplicative reporting, the government proposed that gross proceeds from the sale or redemption of covered crypto-assets would not be reportable under the amended CRS, provided that such information is already reported under the CARF.
Read a June 2026 report prepared by the KPMG member firm in Hong Kong