Hong Kong Unveils Plan for Enhanced Cryptocurrency Reporting and Transparency Framework by 2026

Hong Kong to Enact Crypto Asset Reporting Framework by 2026

In a significant move aimed at enhancing international tax transparency and combating cross-border tax evasion, the government of Hong Kong has announced plans to introduce the Crypto-Asset Declaration Framework (Declaration Framework) by 2026. This development comes as part of the country’s commitment to implementing global standards for tax transparency.

According to official sources, Hong Kong will begin the first automatic exchange of information with relevant tax jurisdictions under the reporting framework starting in 2028. The OECD Global Forum on Transparency and Effective Exchange of Information in Tax Matters (Global Forum) has welcomed this initiative, emphasizing its significance in upholding global tax transparency.

The new framework is designed to align with the existing Common Reporting Standard for the Automatic Exchange of Financial Account Information in Tax Matters. This means that crypto-asset accounts and transactions will be automatically exchanged on an annual basis between tax jurisdictions where the users or controllers are tax residents.

In a statement, Secretary for Financial Services and the Treasury, Mr Hui Ching-yu, highlighted the importance of implementing this framework. He emphasized that it is essential to maintain Hong Kong’s reputation as an international financial and business center while also reinforcing its stance as a responsible tax jurisdiction.

Furthermore, the government has indicated that it will engage with stakeholders, including the public, during the legislative amendment process to ensure that all relevant perspectives are taken into account.

This development marks another significant step towards greater transparency in the global cryptocurrency market.

Source: http://www.cryptonewsz.com