Hong Kong Targets Crypto Tax Evasion with 2028 Data Sharing Plan

Hong Kong is tightening its grip on crypto taxation, announcing a new data-sharing framework set to roll out by 2028—a move aimed squarely at stopping tax evasion in the city’s fast-growing digital asset market. While Hong Kong has been positioning itself as one of the world’s most crypto-friendly financial hubs, regulators are now making it equally clear that “friendly” doesn’t mean “unregulated.”

Under the upcoming framework, licensed crypto exchanges will be required to share detailed transaction records, identity data, and trading histories with tax authorities. The goal is simple: ensure that gains from crypto trading, staking, token sales, and conversions aren’t slipping through the cracks. For a market that has seen explosive growth, regulators believe the lack of reporting transparency poses increasing risks—not just for tax revenue, but for financial integrity.

Investors shouldn’t panic. Hong Kong isn’t banning anything; instead, it’s moving toward a more mature system where crypto activity is treated similarly to traditional financial assets. But it does mean the era of casually trading without clear tax reporting obligations is ending.

For everyday traders, the message is clear: keep clean records, expect stricter disclosures, and prepare for a future where crypto and taxes are tightly linked. Hong Kong’s ambition is to be a global crypto hub—just not one that tolerates hidden profits.