- Seventy-six governments have committed to sharing crypto data under the CARF.
- Fifty-three countries have signed the agreement enabling automatic exchange.
- Switzerland delayed its timeline while the United States continues its internal review.
Hong Kong has launched a public consultation on how it plans to implement the international Crypto-Asset Reporting Framework (CARF) as governments worldwide update tax reporting systems for digital assets.
The consultation, announced Tuesday, seeks feedback on both the technical rollout of CARF and the necessary updates to local tax reporting rules. It aims to gather stakeholder input on how to integrate CARF reporting obligations into current systems while minimizing disruption for reporting entities.
This initiative is part of Hong Kong’s broader effort to align its crypto oversight with global transparency standards and strengthen measures to prevent cross-border tax evasion.
Hong Kong’s approach builds on its existing practice of exchanging financial account information with partner jurisdictions annually since 2018, rather than representing a sharp change in direction.
The consultation also calls for input on transitional arrangements that could help reporting entities adapt to new requirements without disrupting existing compliance systems.
That approach reflects the government’s intention to manage the sector’s transition smoothly while meeting international expectations for transparent reporting of digital asset holdings across globally interconnected financial markets.
Hong Kong broadens its regulatory review
The consultation examines how CARF would operate alongside the Common Reporting Standard (CRS), another OECD initiative shaping international tax reporting.
By considering both frameworks together, Hong Kong aims to incorporate crypto data-sharing into established financial reporting systems, ensuring consistency with existing tax transparency mechanisms.
This process highlights growing coordination among jurisdictions adapting policy tools to the rapid expansion of digital asset markets.
Global momentum is shaping the process
CARF is gaining traction globally. In early November, 47 governments made a joint commitment to adopt the framework promptly, and reports indicate Brazil is also considering participation.
Other jurisdictions are moving more slowly. Switzerland postponed its implementation to 2027 and is still deciding which countries will be included in its data exchanges.
In the same month, the United States reviewed an Internal Revenue Service proposal related to joining CARF. Although timelines vary, participation continues to rise worldwide.
More jurisdictions commit to adoption
According to an OECD list updated on December 4, 48 countries plan to adopt CARF by 2027 and 27 more by 2028, while the United States has identified 2029 as its target year. That brings the total to 76 countries committing to share crypto data.
A separate OECD list shows 53 countries have already signed the Multilateral Competent Authority Agreement, the legal basis for automatic information exchange. These commitments signal growing global support for unified crypto reporting standards.
Activity in the Cayman Islands draws attention
Recent figures show a 70% year-over-year increase in foundation company registrations in the Cayman Islands.
Legal practitioners at Walkers noted that CARF will likely exclude entities that solely hold crypto assets, such as protocol treasuries, certain investment vehicles, or passive foundations.
That observation raises questions about how some entities may fall outside the scope of data sharing as reporting rules continue to evolve internationally.