Investment Rating - The overall rating for Benin's compliance with the Exchange of Information on Request (EOIR) standard is not applicable at this stage, as the assessment focuses on the legal and regulatory framework only [38][53]. Core Insights - Benin has joined the Global Forum on Transparency and Exchange of Information for Tax Purposes in 2019 and has made efforts to strengthen its legal framework for tax transparency and information exchange [39]. - The report assesses the legal and regulatory framework in place as of November 4, 2025, indicating that while it is in place, it requires significant improvements in the availability and access to information [36][37]. - The assessment will be followed by a Phase 2 review to evaluate the practical implementation of the framework, scheduled to begin no later than November 2028 [37]. Summary by Sections Availability of Information - Element A.1 (Availability of ownership and identity information): Needs improvement [38]. - Element A.2 (Availability of accounting information): Needs improvement [38]. - Element A.3 (Availability of banking information): Needs improvement [38]. Access to Information - Element B.1 (Competent authority's ability to obtain and provide information): Needs improvement [38]. - Element B.2 (Notification requirements, rights and safeguards): In place [38]. Exchange of Information - Element C.1 (Exchange of information mechanisms): In place [38]. - Element C.2 (Exchange of information mechanisms with all relevant partners): In place [38]. - Element C.3 (Confidentiality): In place [38]. - Element C.4 (Rights and safeguards of taxpayers and third parties): In place [38]. - Element C.5 (Request and provision of information in an effective manner): Not applicable [38].

Core Viewpoint - Hong Kong's crypto industry is concerned that the implementation of the Crypto-Asset Reporting Framework (CARF) may lead to unintended consequences if not properly adjusted by regulators [1][4]. Group 1: Industry Concerns - The Hong Kong Securities & Futures Professionals Association has urged authorities to refine the rollout of CARF to avoid operational strain and legal uncertainty for local crypto firms [3][4]. - The association supports tax transparency but highlights that certain elements of the proposed regime could impose disproportionate penalties on local firms [4]. - Industry participants emphasize the importance of data collection methods, advocating for a broader approach that includes both reportable and non-reportable clients [7]. Group 2: Regulatory Framework - CARF aims to address gaps in existing tax reporting systems by capturing crypto-specific activities that are not covered by traditional financial accounts [5]. - Under CARF, crypto-asset service providers must collect and report detailed user and transaction information, which will be shared with other jurisdictions [5]. - Hong Kong is among 76 markets committed to CARF, with plans to start data exchanges by 2028 and complete legislative amendments by 2026 [6].

Regulatory Compliance - UK crypto-asset service providers will be held to the same reporting standards as traditional financial institutions [1] - From January 1, 2026, UK-based crypto-asset service providers must collect and report user data to HMRC under the Crypto-Asset Reporting Framework (CARF), aligning with OECD standards [1] - Systems must be CARF-ready by December 31, 2025 [1] - First report due May 31, 2027, for 2026 activity [1] Scope of Regulation - Any platform that facilitates crypto transactions, including exchanges, brokers, and dealers, is affected [1] - Only crypto-assets used for payment or investment (not already under CRS) are in scope [1] Data Requirements - Required data includes individuals' name, date of birth, address, and tax ID, as well as entities' legal details and controlling persons [1] - Transaction data required includes type, units, and value [1] Penalties for Non-Compliance - Penalties for non-compliance can be up to £300 per user [1] - Senior management may be held liable for non-compliance [1]

Regulatory Compliance - UK crypto-asset service providers must adhere to new reporting standards aligning with OECD standards under the Crypto-Asset Reporting Framework (CARF) [1] - The framework mandates the collection and reporting of user data to HMRC, effective from 1 January 2026 [1] - First report is due by 31 May 2027, covering 2026 activity [1] - Systems must be CARF-ready by 31 December 2025 [1] Scope and Impact - The rules affect platforms facilitating crypto transactions, including exchanges, brokers, and dealers [1] - Required data includes individuals' name, date of birth, address, and tax ID, as well as entities' legal details and controlling persons [1] - Transaction data required includes type, units, and value of cryptoassets used for payment or investment (not already under CRS) [1] Penalties - Non-compliance may result in penalties of up to £300 per user [1] - Senior management may be held liable for non-compliance [1]