Hong Kong to boost crypto industry with new licenses and tax perks

Hong Kong authorities expect to licence much crypto exchanges earlier the extremity of this year, according to Financial Secretary Paul Chan.

At the ongoing Hong Kong FinTech Week, Chan stated that the Securities and Futures Commission (SFC) is actively reviewing much platforms for imaginable licensing. The quality indicates that much virtual plus work providers could person licenses, joining caller licensees similar OSL Exchange, Hashkey Exchange, and HKVAX.

He stated:

“We person issued 3 licenses truthful far. Meanwhile, the SFC (Securities and Futures Commission) is assessing the ineligible and regulatory compliance of those deemed work providers. We expect much licences volition beryllium issued successful the adjacent mates of months.”

Chan besides highlighted further regulatory efforts underway, including plans to regulate stablecoins and found guidelines for over-the-counter (OTC) trading. He added:

“The HKMA has already launched a stablecoin issuer sandbox successful March to let funny parties to behaviour investigating and to facilitate two-way connection connected the projected regulatory requirements, ensuring that specified requirements are acceptable for purpose. It is our program to present the authorities this year.”

Further, Chan pointed retired that the Hong Kong authorities was not solely looking to reap the benefits of AI but besides seeking to “address the imaginable challenges, specified arsenic cybersecurity, information privacy, the extortion of intelligence spot rights, and concerns astir its interaction connected jobs and ethics.”

Due to this, the authorities volition motorboat a argumentation connection that reflects its argumentation stance and regulatory attack to the liable exertion of AI successful fiscal services.

Tax incentives

Meanwhile, Hong Kong is besides exploring caller taxation incentives that could widen existent breaks for accepted funds and household offices to crypto investments.

Christopher Hui, Secretary for Financial Services and the Treasury shared this update during Hong Kong FinTech Week, noting that taxation concessions for crypto and different investments could beryllium implemented by year-end.

Hui believes these incentives volition stimulate concern and accelerate maturation successful the sector.

The station Hong Kong to boost crypto manufacture with caller licenses and taxation perks appeared archetypal connected CryptoSlate.