Hong Kong is preparing a series of preferential policies related to crypto, such as proposing tax reductions, providing licenses for more exchanges, and announcing a digital asset index. These signals are aimed at helping Hong Kong attract more capital from around the world to its crypto market.
Hong Kong plans to reduce crypto taxes, issue more exchange licenses
On October 28, 2024, The Block reported that Hong Kong authorities are planning to further expand tax incentives for private funds and family offices to support crypto investments.
Hong Kong eyes tax breaks for crypto, more trading platform licenses by year-end: officials https://t.co/WGamf55GC1
— The Block (@TheBlock__) October 28, 2024
Christopher Hui, Secretary for Financial Services and the Treasury, said at the Hong Kong Fintech Week that the government plans to extend tax incentives for certain investment groups, including crypto investments, by the end of this year.
"We hope that by expanding the scope of tax incentives for eligible assets for investment funds and family offices, we can further boost the momentum and appeal of the Hong Kong market."
Meanwhile, Financial Secretary Paul Chan said the Hong Kong Securities and Futures Commission is actively evaluating applications for crypto trading platforms.
"We hope to issue more licenses in the coming months."
This statement opens up opportunities for crypto exchanges to set up branches in this promising market.
Since announcing the licensing criteria for crypto exchanges in June 2023, the regulator has issued licenses to 3 platforms: HKVAX, HashKey, and OSL.
In addition, Mr. Chan also said that the Hong Kong Monetary Authority (HKMA) plans to introduce stablecoin-related regulations this year, after HKMA launched a stablecoin management pilot program. Standard Chartered and Animoca Brands are among the participants in this sandbox program.
After the stablecoin regulations are in place, companies intending to issue stablecoins pegged to fiat currency in "Hong Kong" will need to obtain a license from HKMA.
According to Mr. Chan, the government is also reviewing the regulations on decentralized trading and will launch a second round of public consultation next year. After that, the authorities will announce the licensing conditions for crypto custody service providers.
Meanwhile, according to Wu Blockchain, the Hong Kong Stock Exchange, the world's sixth-largest stock exchange, will launch a series of digital asset indices on November 15, 2024.
The Hong Kong Stock Exchange, the world's sixth largest stock exchange, will launch a virtual asset index series on November 15 to provide a unified reference price for Bitcoin and Ethereum in the Asian time zone. The index will be the first virtual asset index series developed...
— Wu Blockchain (@WuBlockchain) October 28, 2024
The purpose is to provide a unified reference price for Bitcoin and Ethereum in the Asian time zone. This index will be the first digital asset index series developed in Hong Kong, but it will comply with the EU Benchmark Regulation (BMR). The index will be managed and calculated by the UK-based digital asset data provider CCData.
With these open and positive signals, Hong Kong authorities are building the image of a crypto-friendly special economic zone.
Indeed, with the launch of Bitcoin and Ethereum ETFs on April 30, Hong Kong's crypto market is increasingly affirming its position.
Compiled by Coin68
Join the discussion on the hottest DeFi issues in the Fomo Sapiens chat group with Coin68 admins!!!
