The Hong Kong government has committed to implementing a Crypto Asset Reporting Framework (CARF) to enhance international tax transparency and combat cross-border tax evasion. CARF is a framework by the OECD aimed at establishing a unified tax information exchange mechanism, requiring crypto asset service providers to report non-resident clients' crypto asset information and automatically send this information to the tax authorities in the clients' home countries. Hong Kong plans to complete local legislative amendments by 2026 and commence the first automatic data exchange in 2028. This move will enhance tax transparency in the crypto asset sector and prevent tax evasion. Hong Kong has already taken several measures in crypto asset regulation, including a virtual asset regulatory framework and a licensing system for virtual asset service providers. Although compliance pressure may increase in the short term, in the long run, CARF will help establish a sustainable crypto market environment and promote healthy industry development.