Hong Kong government entities aimed at attracting foreign investments visited a tech conference in Toronto, Canada, promoting its offshore-ready technology hub for Canadian crypto and Web3 startups.
The Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK) jointly hosted an event at Collision 2024 in Toronto, emphasizing Hong Kong’s crypto-friendly environment.
Emily Mo, Director of Toronto ETO, highlighted Hong Kong’s startup-friendly regulations, including lower taxes compared to Canada, and Hong Kong’s support for pre-commercial specialist technology firms. She stated:
“Hong Kong fosters a creative approach to Web3 and virtual asset developments. Fintech, health technology, green technology, and property technology are trending in Hong Kong and across Asia.”
Tax Agreement Between Canada and Hong Kong
Mo highlighted that Canadian businesses operating in Hong Kong can access both public and private funding opportunities.
Canada and Hong Kong have maintained a double tax agreement for over a decade, aimed at preventing double taxation and combating tax evasion related to both personal and corporate income taxes.
Hong Kong Legislative Council member Johnny Ng Kit-Chong announced on June 22 the establishment of the Subcommittee on Web3 and Virtual Asset Development. The subcommittee aims to foster the growth of Web3 technologies and digital assets within Hong Kong.
The council is soliciting input on key facets of Web3 policy formulation, encompassing the harmonization of technical, legal, and regulatory frameworks to establish a cohesive environment conducive to robust and transparent Web3 development.
Crypto Exchange Exodus from Hong Kong
In May, all unlicensed crypto exchanges operating in Hong Kong were compelled to cease operations. Initially, over 20 exchanges had applied for a crypto license, but many withdrew their applications after failing to meet the stipulated requirements.
Gate.HK, a cryptocurrency exchange based in Hong Kong, announced plans to re-establish its services following a platform reconstruction aimed at meeting Hong Kong’s regulatory standards. These requirements include implementing Anti-Money Laundering and Counter-Terrorist Financing measures. The company affirmed:
“We are actively undertaking the necessary overhaul. Our goal is to resume operations in Hong Kong and support the virtual asset ecosystem upon obtaining the appropriate licenses.”
Several major global crypto exchanges, including OKX, Huobi HK, and Bybit, withdrew their license applications amidst the regulatory adjustments.
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