Hong Kong to share crypto data with overseas tax authorities, excludes China

Hong Kong will begin automatically exchanging cryptocurrency transaction data with overseas tax authorities in 2028, excluding China for now, according to Colin Wu, founder of Wu Blockchain. On November 4, Hong Kong's Legislative Council passed an amendment to its tax ordinance to implement the OECD's Crypto-Asset Reporting Framework (CARF). Wu stated that mainland China will not participate in CARF and will not receive the latest exchange data, as authorities are primarily focused on monitoring bank deposit and withdrawal information. He noted that authorities already possess exchange data from before investors left the mainland. Wu mentioned that mainland taxpayers face a 20% tax rate on crypto trading gains, even when in Hong Kong, while Hong Kong taxpayers are not taxed on profits from long-term investments or occasional trading. He indicated that mainland authorities have not yet enforced regulations in this area but are expected to do so gradually, with a retrospective review of past transactions likely in the future.

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