The Chinese government’s legislative initiative provides for the exemption of hedge funds, private and family investment companies in Hong Kong from taxes on income from transactions with digital assets, investments in private and carbon credits, as well as overseas real estate. The project was the result of intense competition with Singapore, Luxembourg and Switzerland to attract billionaires and large management companies.
“Taxation is one of the key factors for the asset management sector when deciding where to base its activities,” explain the authors of the bill.
Hong Kong’s Financial Services and Treasury Bureau (FSTB) said that family investment funds are now allocating up to 20% of their portfolios to digital assets, indicating the growing role of cryptocurrencies in investment strategies.
Previously, Hong Kong authorities announced their intention to tighten legislation regarding issuers of stablecoins and to prohibit any offer of these assets to retail investors without licenses from financial regulators.
Source: Bits
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