During the opening of the Hong Kong Fintech Week several keynotes covered the topics of stablecoins, cryptocurrency and tokenization. While the Treasury mainly focused on AI, it also covered the planned regulatory program for crypto including tax incentives. Hong Kong Monetary Authority (HKMA) leader Eddie Yue spent considerable time talking about tokenization, and the Securities and Futures Commission (SFC) focused on crypto.
The Treasury outlined the planned regulatory agenda which includes stablecoin regulations to be released this year, a second digital asset custody consultation next year, as well as a review of the regulation of virtual asset (crypto) over the counter (OTC) trading venues in 2025.
On the topic of tax incentives, there are two sets of broad tax exemptions in Hong Kong for privately offered funds under the unified fund regime and for family owned investment holding vehicles (FIHVs) for family offices. However, so far only limited asset classes attract tax breaks. There are plans to extend these tax breaks to private credit and virtual assets, amongst others.
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