Hong Kong is experiencing a significant revival in its cryptocurrency sector, with numerous firms returning to the city after previously relocating operations to Singapore.
As Hong Kong approaches the 27th anniversary of its return to Chinese sovereignty, its financial sector is demonstrating robust growth, particularly in digital assets. Since setting its goal to become a crypto center in 2022, Hong Kong has hosted multiple digital economy conferences, attracting key industry leaders.
Moreover, Hong Kong’s appeal is further increased by its tax regime, which releases capital gains tax on virtual asset investments—a stark contrast to jurisdictions like Japan and Australia, where such taxes can reach up to 50% and 40%, respectively.
Hong Kong has survived the previous crises and raised its supervision process by adopting virtual asset innovations like tokenized securities and stablecoins. Partnerships with financial supervisory authorities like the Securities and Futures Commission and the Hong Kong Monetary Authority foster financial instruments and stabilize market appeal and diversity.
Hu Zhenbang, CFO of OSL Group, notes, “Hong Kong has great advantages in developing the virtual asset market.”