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

Hong Kong authorities count on to license extra crypto exchanges earlier than the tip of this yr, in line with Finance Minister Paul Chan.

In the course of the ongoing Hong Kong FinTech Week, Chan said that the Securities and Futures Fee (SFC) is actively investigating extra platforms for attainable licensing. The information signifies that extra digital asset service suppliers may obtain licenses, becoming a member of latest licensees similar to OSL Trade, Hashkey Trade and HKVAX.

He said:

“Thus far now we have issued three permits. In the meantime, the SFC (Securities and Futures Fee) assesses the compliance with legal guidelines and laws by the so-called service suppliers. We count on extra licenses to be issued within the coming months.”

Chan additionally highlighted additional ongoing regulatory efforts, together with plans to control stablecoins and set up pointers for over-the-counter (OTC) buying and selling. He added:

“The HKMA already launched a stablecoin issuer sandbox in March to allow events to conduct testing and facilitate two-way communication on the proposed regulatory necessities, to make sure that such necessities are match for function. Our plan is to introduce the laws this yr.”

Moreover, Chan identified that the Hong Kong authorities not solely wished to reap the advantages of AI, but additionally “tackle the potential challenges similar to cybersecurity, knowledge privateness, the safety of mental property rights, and considerations about its influence on jobs and ethics.”

The Authorities will subsequently launch a coverage assertion that displays its coverage place and regulatory strategy to the accountable software of AI in monetary companies.

Tax incentives

In the meantime, Hong Kong can also be exploring new tax incentives that would prolong present pauses for conventional funds and household workplaces to crypto investments.

Christopher Hui, Minister of Monetary Providers and Ministry of Finance, shared this replace throughout Hong Kong FinTech Week, noting that tax breaks for crypto and different investments could possibly be applied by the tip of the yr.

Hui believes these incentives will enhance funding and speed up development within the sector.

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