Hong Kong to Waive Tax on Crypto Gains for Sophisticated Investors
Author: Content Editor
The Financial Services and the Treasury Bureau in Hong Kong has proposed expanding capital gains tax exemptions to include overseas properties, carbon credits, private credit, and cryptocurrencies. The exemptions would apply to privately offered funds and eligible single-family office investment vehicles. The proposal aims to foster innovation in blockchain technology and finance by extending tax advantages to crypto-related investments. The exact implementation date of the policy is not yet clear. Hong Kong has been focusing on developing digital assets and implemented a licensing framework for virtual asset trading platforms last year. Additionally, a new framework for stablecoin issuers will require them to establish a physical presence in Hong Kong, hold reserves in local banks, and adhere to restrictions on offering interest payments by the end of 2024.