Hong Kong plans to provide tax relief on cryptocurrencies for hedge funds and ultra-wealthy family offices

According to the Financial Times, Hong Kong plans to exempt private equity funds, hedge funds, and ultra-wealthy investment vehicles from taxes on cryptocurrency, private credit investments, and other asset gains.

This week, the Hong Kong government stated in a 20-page proposal that has not yet been published, that taxes are 'one of the main considerations' for asset management companies when deciding on the location of their business, and the Hong Kong government hopes to create a 'favorable environment' for them.

According to the proposal, the Hong Kong government aims to expand the scope of tax-exempt investments to include private credit, overseas real estate, and carbon emission allowances. The government is conducting a six-week consultation on the plan.