Cryptocurrency companies have achieved great success in Hong Kong. After relocating operations to Singapore for several years, many enterprises are now refocusing on this Asian metropolis, reflecting renewed confidence in Hong Kong’s cryptocurrency market.
As Hong Kong approaches the 27th anniversary of its return to China, its financial industry is experiencing significant growth, with the government committed to establishing Hong Kong as a global cryptocurrency hub.
Since setting this goal in 2022, Hong Kong has hosted numerous conferences on the digital economy, attracting top industry leaders.
Hong Kong’s tax regime is a major attraction for investors. Unlike countries such as Japan and Australia, Hong Kong offers a more favorable tax environment. Exemption from capital gains tax means global investors can achieve better returns. Japan’s general tax rate can reach 50%, while Australia’s is 40%. This tax exemption makes Hong Kong an attractive destination for cryptocurrency investment.
“Hong Kong has tremendous advantages in the development of the virtual asset market,” said Jason Pak, CFO of OSL Group.
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Government policies such as the licensing of regulated platforms introduced last year have boosted confidence among global investors. This has led to a significant return of talent and technology companies to the city.
Furthermore, Hong Kong has been actively developing tokenized securities and stablecoins. Last year, the Hong Kong Monetary Authority (HKMA) issued an 80 billion HKD tokenized green bond, which received praise from the industry. The HKMA also established an institution for issuing stablecoins, attracting widespread attention.
Collaborative efforts between the Hong Kong Stock Exchange and the Securities and Futures Commission have facilitated the launch of new products. For example, in April this year, the first batch of spot cryptocurrency ETFs was launched.
