VBIT Hong Kong
On 4 November 2026, Hong Kong’s Legislative Council passed the tax amendment bill introducing the OECD’s Crypto-Asset Reporting Framework (CARF). The framework sets out how service providers collect and report crypto-asset transaction information for the Inland Revenue Department (IRD) to exchange with partner tax jurisdictions. See the Hong Kong Government announcement.
When CARF starts in Hong Kong
From 1 January 2027, service providers subject to Hong Kong’s rules must meet the framework’s registration, due diligence and reporting requirements. The IRD will begin exchanging information with partner jurisdictions in 2028.
When selling USDT for HKD can be reportable
The framework covers exchanges between relevant crypto-assets and fiat currencies, including exchanges settled in HKD cash. A stablecoin sale is reportable under CARF if the token meets the definition of a relevant crypto-asset, the provider has a reporting obligation and the customer is a reportable user.
The IRD includes crypto-asset dealers who trade directly with customers among its examples of reporting service providers. For individual customers, reportable status depends on their tax residence and the applicable list of reportable jurisdictions. See the IRD’s CARF guidance.
What information providers collect
To identify reportable customers, providers obtain a tax-residence self-certification as required under the framework. Reportable details can include a customer’s name, address, tax residence and tax identification number. Providers aggregate transaction data by reporting period, asset and transaction type. The totals can include the value traded, the number of units and the number of transactions.
CARF governs how transaction information is reported and exchanged. Whether an individual must file a tax return or pay tax depends on the applicable law and the circumstances of the transaction. For Hong Kong’s profits tax treatment of cryptocurrency transactions, see IRD Practice Note No. 39.
Which USDT cash-out records to keep
Keep your purchase and sale records together. For a sale, record the date, USDT amount, HKD received and on-chain transaction ID (TxID), and retain the receipt. These records help you check your acquisition cost or match a transfer to its cash settlement later.
When you sell USDT at a VBIT store in Hong Kong, you receive HKD in cash. For visit arrangements and what to check before sending USDT, see VBIT’s USDT cash-out service.
