The Inland Revenue Department has unveiled a comprehensive Cryptocurrency Reporting Framework that sets out the data collection, verification and disclosure obligations for digital‑asset service providers and individual traders. Effective from the upcoming assessment year, the framework mandates that all operators of virtual‑asset exchanges, custodial services and initial coin offering platforms maintain detailed records of every transaction exceeding a prescribed threshold, including the nature of the asset, counterparties and timestamps. These records must be submitted electronically to the department through a dedicated online portal, where they will undergo automated validation before being archived for a minimum of ten years. The guideline also introduces a tiered reporting rate, requiring higher‑value transfers to be accompanied by additional anti‑money‑laundering checks. Penalties for non‑compliance range from fixed fines to possible criminal prosecution for willful concealment. The department emphasizes that the new regime is part of a broader global effort to combat tax evasion involving digital currencies and aligns Hong Kong’s standards with OECD recommendations. Industry associations have welcomed the clear procedural steps but have called for a grace period to allow systems to be upgraded. The department has announced a phased rollout, with full enforcement scheduled six months after the official publication of the rule.