Hong Kong, Wednesday, October 30, 2024- Hong Kong is set to intensify its push for cryptocurrency adoption with new regulatory changes designed to make the city more attractive to crypto investments and trading platforms.
During a speech at the Hong Kong Fintech Week, Christopher Hui, Secretary for Financial Services and the Treasury, confirmed that tax concessions currently applicable to privately offered funds and family offices will be extended to cryptocurrency investments by the end of 2024.
The initiative aims to provide a favorable tax environment for crypto-related investments, an effort intended to attract more private investment funds and family offices to the city.
Hui emphasized that the this would broaden the scope of assets under the city’s fund and family office regimes, offering these investors additional incentives and encouraging their participation in Hong Kong’s rapidly developing digital finance landscape.
In tandem with the tax concessions, Hong Kong is accelerating its licensing framework for crypto trading platforms as well.
The Hong Kong Securities and Futures Commission (SFC), the city’s financial regulatory body, began issuing crypto exchange licenses in June 2023, permitting licensed platforms to offer retail trading services.
Currently, three platforms—OSL Exchange, HashKey Exchange, and HKVAX—have received approval to operate under this new regime, which focuses on investor protection and operational transparency.
Paul Chan, Hong Kong’s Financial Secretary, also announced that the SFC anticipates approving additional trading licenses by the end of the year.
Another significant regulatory development includes Hong Kong’s plan to implement stablecoin legislation by the close of 2024.
The HKMA is set to launch a second consultation round on over-the-counter (OTC) trading regulations in early 2025, as it seeks to establish a licensing regime for crypto custody services.
