Hong Kong has taken a significant step toward formalizing cryptocurrency taxation, with the passage of a 2026 tax ordinance bill that paves the way for a comprehensive crypto asset reporting framework (CARF). The bill, approved by the Legislative Council last week, has now entered the review stage for the accompanying CARF legislation, according to local media outlet Ming Pao.

Scope of the New Framework

Legislative Council member Chan Wai-man disclosed that the new reporting framework is expected to bring approximately 8,000 additional financial institutions under mandatory registration and taxation requirements. This marks a substantial expansion of Hong Kong’s tax oversight into the digital asset sector, reflecting the…