Hong Kong to boost crypto industry with new licenses and tax perks
Hong Kong authorities plan to license more crypto exchanges by year-end, as stated by Financial Secretary Paul Chan during Hong Kong FinTech Week. The Securities and Futures Commission (SFC) is reviewing additional platforms for licensing, following the issuance of three licenses to OSL Exchange, Hashkey Exchange, and HKVAX. Chan indicated that the SFC is assessing compliance for potential service providers and expects more licenses soon. Regulatory efforts will also include stablecoin regulations and guidelines for over-the-counter trading, with legislation anticipated this year. The Hong Kong Monetary Authority (HKMA) has launched a stablecoin issuer sandbox for testing regulatory requirements. Additionally, the government aims to address AI-related challenges, including cybersecurity and data privacy, through a forthcoming policy statement. Tax incentives for crypto investments are being explored to stimulate growth in the sector, with potential implementation by year-end.
