Hong Kong is set to introduce new tax incentives for family offices and private funds investing in cryptocurrencies by the end of 2024. Christopher Hui, the Secretary for Financial Services and the Treasury, emphasized the region's goal to create a conducive environment for blockchain and its financial applications during Hong Kong's FinTech Week.
The current tax framework includes a profits tax exemption at a standard rate of 16.5% and a 0% tax rate on carried interest for private equity managers. The new policy aims to further develop and regulate crypto investments, supporting Hong Kong's ambition to become a global digital assets hub.
This initiative follows the implementation of the Virtual Asset Trading Platform (VATP) regime in June 2023, which enhances investor protections and compliance for digital asset platforms. Additionally, a stablecoin policy is expected to be introduced by year-end, with further regulatory measures for custodians planned for 2025.