On June 3, Mr. Chan Ho Lim, Acting Secretary for Financial Services and the Treasury of Hong Kong, moved the Second Reading of the Inland Revenue (Amendment) (Crypto Asset Reporting Framework and Revised Common Reporting Standard) Bill 2026 at the Legislative Council. He stated that to boost cross-border tax transparency and curb international tax evasion, the OECD has been promoting automatic exchange of tax information worldwide and formulated the Common Reporting Standard.

Chan stressed that Hong Kong needs to amend its Inland Revenue Ordinance to roll out the new rules, honour international tax commitments and preserve its standing as an international financial hub. It also helps prevent Hong Kong from being labelled a non-cooperative tax jurisdiction, which would raise compliance and tax costs for Hong Kong enterprises overseas.

To facilitate effective implementation of the crypto asset reporting regime in Hong Kong, the proposed amendments will define crypto assets, crypto asset reporting service providers and reportable transactions, set out reporting thresholds, specify information to be filed with the Inland Revenue Department and lay down due diligence requirements.