Hong Kong intends to eliminate taxes on investment gains from cryptocurrencies and other alternative assets to benefit hedge funds, private equity firms, and family offices; according to a circular by Hong Kong’s Financial Services and the Treasury Bureau.
Hong Kong authorities have proposed extending capital gains tax exemptions to include overseas properties, private credit, virtual assets, carbon credits, and other asset classes. These exemptions apply to privately-offered funds and investment vehicles of eligible single-family offices.
The proposal emerges as Bitcoin reaches record highs. Hong Kong hosts over 2,700 single-family offices, with more than half managing assets exceeding USD 50 million, according to government estimates.
Being Asia’s top hedge fund hub and second in private equity funds under management, this tax policy is part of Hong Kong’s attempt to bolster its position as a global digital asset hub to attract capital from the Western markets amid ongoing economic crisis between China and the western nations.
