Hong Kong Considers Tax Concessions For Virtual Assets

According to CoinDesk, virtual assets could soon be included in a new set of tax concessions in Hong Kong. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, announced this development during Hong Kong Fintech Week on October 28. The proposed tax concessions aim to attract institutional investors and include other investment types such as immovable property outside Hong Kong, emission derivatives/allowances, insurance-linked securities, interests in non-corporate private entities, and loans and private credit investments. Hui did not provide specific details on the nature of these tax breaks or the requirements for eligibility. However, he emphasized that expanding tax concessions to a broader range of assets could significantly enhance the market's development. Currently, Hong Kong offers tax concessions to privately offered funds and family-owned investment holding vehicles. Hui noted that tax breaks for virtual assets are a frequent request from the government. In addition to tax concessions, Hui mentioned that regulatory updates are being planned for the crypto industry. These updates will focus on stablecoin issuers, over-the-counter (OTC) trading services, and custodians. Hui expressed optimism that by broadening the scope of service regulation, these markets could experience further growth.