Crypto companies are returning to Hong Kong with great vigor. After several years of shifting their operations to Singapore, numerous enterprises are now refocusing on the Asian megapolis, reflecting confidence in Hong Kong’s crypto market.
Approaching the 27th anniversary of Hong Kong’s return to China, its financial sector is experiencing substantial growth, with the government committed to solidifying Hong Kong as a global crypto hub.
Since setting this goal in 2022, Hong Kong has hosted numerous conferences on the digital economy, attracting industry leaders.
A key draw for investors is Hong Kong’s tax system. Unlike countries such as Japan and Australia, Hong Kong offers a much more favorable tax environment. The absence of profit tax on assets means better returns for global investors. In Japan, overall tax rates can reach 50%, and in Australia, 40%. This tax relief makes Hong Kong an attractive destination for crypto investments.
“Hong Kong has significant advantages in developing the virtual asset market,” shared Junbang, CFO of OSL Group.
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Government policies, such as last year’s supervision of licensed platforms, have increased global investor confidence. This has led to a rise in talent and tech companies returning to the city.
Additionally, Hong Kong has shown activity in developing tokenized securities and stablecoins.
Last year, the Hong Kong Monetary Authority (HKMA) generated 800 million Taiwanese dollars in tokenized green bonds—a move well-received by the industry. HKMA also launched a stablecoin issuer, sparking significant interest.
Collaborative efforts between the Hong Kong Stock Exchange and the Securities and Futures Commission have led to the introduction of new products. For instance, in April this year, the first batch of spot crypto ETFs was launched.
