October 30, 2024
By Our Correspondent
Virtual assets are included in a range of proposed investment categories that may be eligible for new tax concessions, as disclosed by Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, during Hong Kong Fintech Week on October 28.
Other potential candidates for these tax concessions include real estate located outside of Hong Kong, emission derivatives and allowances, insurance-linked securities, interests in non-corporate private entities, as well as loans and private credit investments. Hui did not provide specific details regarding the nature of these tax incentives or the criteria for eligibility, but they seem to be aimed at institutional investors.
Currently, the city provides tax concessions for privately offered funds and family-owned investment holding entities. Hui noted that inquiries about tax breaks related to virtual assets are frequently raised by stakeholders.
“By broadening the range of tax concessions to encompass this wider array of assets… we will enhance the appeal and momentum of this market in terms of development,” Hui stated.
He also mentioned that additional regulatory updates for the cryptocurrency sector are forthcoming, which will include frameworks for stablecoin issuers, over-the-counter trading services, and custodians.
“By adopting a more comprehensive approach to service regulation, we hope to further stimulate the growth of these markets,” he remarked.
