Hong Kong passes law requiring crypto exchanges to report customer transactions to tax authorities

China's securities regulator, the China Securities Regulatory Commission (CSRC), has requested additional tax records from three Hong Kong initial public offering (IPO) applicants. The firms targeted are Fujian Senda Electric, Shenzhen Pu Ying Innovation Technology Corp, and Amicro Technology. The CSRC's move comes amid a tightening crackdown on tax compliance in China.

Fujian Senda Electric, based in Fuzhou, Fujian province and listed on Beijing's National Equities Exchange and Quotations board, has been asked to provide details on internal dividend approvals, fund flows, and compliance with tax and regulatory procedures. The company's predecessor was a Hong Kong trading firm and has undergone multiple restructurings, including conversion from a foreign-invested enterprise to a domestic one.

Shenzhen Pu Ying Innovation Technology Corp, a manufacturer of enterprise-grade financial intelligent printing and document processing equipment, is required to explain its previous capital reductions and confirm compliance with all legal and tax procedures. The CSRC also wants information on the company's internal dividend decision-making and distribution, as well as tax payments and other procedural compliance.

Amicro Technology, a Zhuhai-based provider of chip technology for intelligent mobile robots, has successfully passed its listing hearing with Hong Kong Exchanges and Clearing. The CSRC has requested the firm to disclose the pricing basis for equity transfers involving new shareholders in the year prior to its Hong Kong listing application, along with the income tax payment status for such transactions.