Virtual assets could be included in a new set of tax concessions.
Regulatory updates are also in the works for stablecoin issuers, OTC trading services and custodians.
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Virtual assets are among a list of proposed investment types that could receive new tax concessions, Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, revealed at Hong Kong Fintech Week on Oct. 28.
The other proposed new candidates for tax concessions are immovable property situated outside Hong Kong, emission derivatives/allowance, insurance linked securities, interest in non-corporate private entities and loans and private credit investments.
Hui did not elaborate on what these tax breaks would involve or what the requirements would be, but they appear to target institutional investors.
The city currently offers tax concessions to privately offered funds and family-owned investment holding vehicles. Hui said tax breaks around virtual assets was a common thing the government was asked about.
“By expanding the availability of tax concessions to this wider scope of assets… we will be able to add an extra emphasis and pull to this market on the development front,” Hui said.
He added that further regulatory updates were also in the works for the crypto industry, including regulatory regimes for stablecoin issuers, OTC trading services and custodians.
“Hopefully, by embracing a broader scope of service regulation, we will be able to grow these markets further,” he said.
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Edited by Parikshit Mishra.