Hong Kong Backs OECD's Global Crypto Tax Plan: 70 Nations Sign On

• Hong Kong plans to adopt the OECD's CARF framework for cryptocurrency tax reporting by 2028.
• The shift highlights Hong Kong's move from innovation to stricter regulatory enforcement in its digital asset sector.

Hong Kong will align its cryptocurrency tax regulations with the Organisation for Economic Co-operation and Development's (OECD) global Crypto-Asset Reporting Framework (CARF) by 2028. On December 27, 2025, Cryptopolitan reported that the decision supports international efforts to counter tax evasion and improve compliance as the digital asset market evolves.

This adoption marks a significant shift in Hong Kong’s regulatory stance, transitioning from its historical emphasis on innovation to a stricter focus on enforcement and transparency. To guide the adoption of CARF, the city’s government has initiated a public consultation process, which will remain open until early 2026.

Currently, Hong Kong follows the Common Reporting Standard (CRS) for tax regulations, a framework criticized for its shortcomings in tackling the intricacies of cryptocurrency transactions. With the surge in digital asset markets, the OECD has identified regulatory gaps that allow wealth transfers to remain untracked. CARF aims to address these vulnerabilities by enhancing the oversight of crypto-related activities.

Legal analysts underscore the importance of CARF adoption in maintaining Hong Kong’s international standing as a compliant financial hub. The initiative is intended to prevent the city from facing blacklisting by global authorities that prioritize transparency and adherence to international tax standards. This regulatory pivot reflects Hong Kong’s effort to balance its aspirations as a crypto innovation center with the responsibilities of a global financial jurisdiction.

However, implementing CARF is expected to impose significant compliance demands on crypto businesses. Companies will need to strengthen due diligence and reporting protocols to meet the new standards. Experts caution that the heightened scrutiny on centralized exchanges could inadvertently push illicit activity toward less regulated peer-to-peer networks, complicating monitoring efforts.

Over 70 jurisdictions worldwide have committed to adopting the CARF framework, including several major cryptocurrency markets, with an international rollout anticipated between 2027 and 2028. Hong Kong’s decision places it among these nations, reaffirming its commitment to tax compliance and regulatory transparency in the rapidly advancing digital asset ecosystem.