Hong Kong Opens Consultation on OECD CARF Crypto Tax Sharing
Hong Kong has opened a public consultation on implementing the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework (CARF) and updating its tax reporting standards, aiming to align crypto tax data sharing with international practices and curb cross-border tax evasion, according to a Tuesday announcement.
The initiative represents a move toward standardization rather than a policy shift. Authorities in Hong Kong have been conducting annual automatic exchanges of financial account information with partner jurisdictions since 2018.
Christopher Hui, Hong Kong’s secretary for financial services and the Treasury, said that adopting CARF would underscore the government’s commitment to international tax cooperation and to tackling cross-border tax evasion.
Alongside CARF, the government is also inviting feedback on the Common Reporting Standard (CRS), another OECD-led initiative designed to harmonize tax reporting across jurisdictions.
CARF adoption expands globally
International uptake of CARF has been broad. In early November, reports indicated that 47 national governments issued a joint commitment to adopt the framework quickly. Brazil has also reportedly been evaluating participation in the data exchange system.
Some jurisdictions have moved more slowly. At the end of November, Switzerland postponed CARF implementation until 2027 and is still determining which countries it will exchange data with. Also in November, the United States was reviewing an Internal Revenue Service proposal to join CARF.
Adoption continues to progress. An OECD list updated on Dec. 4 shows that 48 nations plan to adopt CARF by 2027, 27 by 2028, and the United States by 2029.
This brings the number of countries pledging to share crypto-asset data to 76 so far. A separate OECD list indicates that 53 countries have signed the Multilateral Competent Authority Agreement, the legal framework enabling automatic information exchange.
Recent data show a 70% year-on-year increase in Cayman Islands foundation company registrations. According to legal professionals at Walkers, CARF likely excludes entities that simply hold crypto assets—such as protocol treasuries, investment funds, or passive foundations—potentially making Cayman Islands foundations a route to remain outside the framework.
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