Hong Kong Accelerates Cryptocurrency Licensing Process

Hong Kong is accelerating the licensing process for cryptocurrency products, including the approval of Bitcoin exchange-traded funds (ETFs) and facilitating retail investors' participation in this market. By April 2024, at least one ETF is expected to be approved, opening up the possibility for investment funds to officially operate in virtual assets in Hong Kong.

In addition, the Hong Kong government has initiated a consultation process to exempt income tax for hedge funds and investment funds related to cryptocurrency, in order to strengthen the region's position as a leading global financial center. Moreover, the Hong Kong Monetary Authority and the Securities and Futures Commission (SFC) are committed to monitoring and adjusting regulations related to cryptocurrency, reflecting the industry's development.

Current regulations require exchanges to have a license from the SFC to operate, and Hong Kong is moving towards a more flexible legal framework to facilitate cryptocurrency services, which is completely different from the strict policy of mainland China.