Hong Kong launches a public consultation on implementing the international Crypto-Asset Reporting Framework (CARF) to align with global standards for crypto tax data sharing. The move aims to fight cross-border tax evasion and demonstrates the government’s commitment to international tax cooperation.

Hong Kong is also seeking feedback on adopting the Common Reporting Standard (CRS), an OECD initiative that standardizes tax reporting internationally. CARF has seen increasing adoption globally, with 76 countries pledging to share crypto data. Cayman Islands saw a 70% increase in foundation company registrations, potentially due to CARF exemptions.

CARF has garnered support from 47 governments pledging to adopt it quickly. However, some countries like Switzerland delayed CARF implementation until 2027, and the US is reviewing the IRS proposal to join the program. A total of 53 countries have signed the Multilateral Competent Authority Agreement for automatic data exchange.

Read more at Cointelegraph: Hong Kong Consults on Data Sharing to Curb Crypto Tax Dodgers