Hong Kong requires crypto exchanges to provide user TXs data to tax authorities

[noorman0]

While Hong Kong may have previously served as a "shield" for one's identity against tax authorities in one's home country, that will no longer be the case by 2028.
A new law has just been enacted.

Hong Kong passes law requiring crypto exchanges to report customer transactions to tax authorities
Crypto firms must collect customer and transaction data from 2027, with Hong Kong sharing the information with overseas tax authorities from 2028.

--snip--
Crypto exchanges and brokers covered by the rules will have to record customers' names, addresses, tax residency, and identification numbers, along with records of crypto purchases, sales, and transfers.

That includes buying and selling cryptocurrencies, swapping one token for another and sending funds to external wallets. The Inland Revenue Department will share customer details and annual transaction totals with tax authorities in participating jurisdictions where those customers are tax residents.

Source

In any event, I still find it hard to believe that, to this day, Hong Kong imposes a 0% tax on capital gains.

[Faisal2202]

Haha, I had no idea that Hong Kong had zero tax on gains, but now that I do, they are going to use the CARF framework to report our earnings back to our own tax authorities, where they can tax our gains. Haha, I guess I wasted the opportunity, but wait! We also had no taxation here as well. Haha, they will impose it in 2027, though.

Anyway, Hong Kong is no longer a tax shelter. Now, what remains on the list? Can we name them out loud even? Haha. Well, the UAE is one I know of.

[Aliciaworld]

While Hong Kong may have previously served as a "shield" for one's identity against tax authorities in one's home country, that will no longer be the case by 2028.
A new law has just been enacted.

Hong Kong passes law requiring crypto exchanges to report customer transactions to tax authorities
Crypto firms must collect customer and transaction data from 2027, with Hong Kong sharing the information with overseas tax authorities from 2028.

--snip--
Crypto exchanges and brokers covered by the rules will have to record customers' names, addresses, tax residency, and identification numbers, along with records of crypto purchases, sales, and transfers.

That includes buying and selling cryptocurrencies, swapping one token for another and sending funds to external wallets. The Inland Revenue Department will share customer details and annual transaction totals with tax authorities in participating jurisdictions where those customers are tax residents.

Source

In any event, I still find it hard to believe that, to this day, Hong Kong imposes a 0% tax on capital gains.

If Hong Kong has a 0% capital gains tax policy, them why exactly do they needs exchanges to hand over TXN data? Is it simply for overseas tax authorities? Why?

Please someone explain

[noorman0]

If Hong Kong has a 0% capital gains tax policy, them why exactly do they needs exchanges to hand over TXN data? Is it simply for overseas tax authorities? Why?

Please someone explain

If you read the article, specifically this part:

"The law adopts the Organization for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework (CARF), released in October 2022 and designed to help governments identify crypto transactions that may otherwise go unreported for tax purposes."

Hong Kong is part of the OECD, where its approach is clearly aligned with supporting the organization's vision: Transparency and Exchange of Information for Tax Purposes.

[Charles-Tim]

In any event, I still find it hard to believe that, to this day, Hong Kong imposes a 0% tax on capital gains.

Crypto trading businesses are taxed according to the content on the link that you posted. But individuals are not taxed.

This is good, but you know what the government can do at anytime. There is still possibility that the government can one day announced that crypto will be taxed.

[YOSHIE]

Hong Kong requires crypto exchanges to provide user TXs data to tax authorities

This is indeed the government's way of controlling crypto, because they cannot regulate and control crypto assets directly, of course they will apply the rules and laws of the Crypto-Asset framework, I assess the legal policies/legislation that apply to crypto transactions in Hong Kong. I assess that this situation will certainly pose a risk for crypto users themselves.

The impact of the laws enacted in Hong Kong for crypto users.
One of them is the convenience where so far crypto exchange users are free from supervision, When these rules apply, strict supervision of external wallets will occur, users will no longer be comfortable when carrying out transactions on crypto exchanges starting from sending crypto assets, buying and selling, Of course, this situation will eliminate the anonymity of the original transfer that should occur with crypto assets on exchanges, wallets and so on.

Not to mention the risks posed by the Hong Kong authorities regarding delayed tax bills, fines and so on including audit examinations, I personally think that this law will also eliminate the original privacy nature of crypto asset transactions themselves.