CRS2 will include crypto assets in global taxation and comprehensively tighten overseas taxation

The global tax "Sky Eye" CRS2 is accelerating its global implementation, and crypto assets, CBDC and some electronic money products have been included in the scope of financial asset declaration. China Hong Kong plans to implement CRS2 before 2028 and simultaneously promote the Crypto Asset Declaration Framework (CARF). In the future, cryptocurrency exchanges, brokers, and crypto ATM operators will need to declare the exchange of cryptocurrency and legal currency, cross-currency crypto asset swaps, and domestic and overseas transfers of crypto assets. The declaration must accurately mark the full name of the asset, such as Bitcoin (BTC), Ethereum (ETH), TEDA (USDT), etc., and calculate the total market value, total positions, and number of transactions according to the transaction dimension. For retail payment transactions, a single amount of more than US$50,000 needs to be declared separately one by one. Although mainland China has not yet "officially announced" the implementation timetable for CRS2, starting from 2025, tax authorities in many places have successively notified taxpayers by telephone, text message, etc. to self-examine and declare overseas income from 2022 to 2024 and pay taxes in accordance with the law. It is reported that CRS2 will not only fully expose overseas held crypto assets to the perspective of tax supervision, but may also trigger joint verification by other regulatory authorities.