As part of Hong Kong’s efforts to establish itself as a leading offshore financial hub, the government has proposed to introduce an exception according to which private equity funds, hedge funds, and the investment vehicles of ultra-wealthy individuals will not be required to pay taxes on their gains from cryptocurrency.
As reported by the Financial Times on Thursday, the proposal states taxation is a major factor for asset managers when considering where to base their operations.
The government aims to create an environment conducive to these entities.
The proposal suggests expanding the range of tax-exempt investments to include private credit, overseas property, and carbon credits. It is currently open to consultation for six weeks.