Hong Kong to Tighten Tax Reporting for Bitcoin, Ether and Other Virtual Assets Starting in 2027

Hong Kong will tighten its tax reporting framework for major virtual assets, including Bitcoin and Ether, starting in 2027.

Crypto outlet Odaily reported on Nov. 6 that the Hong Kong government plans to introduce a virtual-asset reporting regime in 2027, in line with a global push to strengthen crypto taxation and prevent cross-border tax evasion.

The reporting requirement is expected to cover major virtual assets traded in global markets, including Bitcoin, Ether and Solana.

Chan Ho-lim, deputy secretary for financial services and the treasury in Hong Kong, said the government plans to require virtual-asset service providers subject to Hong Kong reporting obligations to register with tax authorities. Those providers will also have to retain records related to customer due diligence, including know-your-customer checks.

The Hong Kong government has also formed a dedicated task force to support the rollout of the system. The group will provide technical support to the industry and respond to related inquiries.

The industry is watching whether the scope of covered service providers will be expanded to include custody, brokerage and over-the-counter trading.

Another key focus is the initial list of jurisdictions with which Hong Kong will share trading data from local platforms after 2028 under the information-exchange framework.