Hong Kong is preparing to roll out a policy by the end of the year that aims to extend tax incentives to family offices and private funds investing in cryptocurrency for wealthy clients. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, indicated that this initiative is part of the region's efforts to establish itself as a global hub for digital assets. The policy is anticipated to enhance the existing tax benefits, which currently include a profits tax exemption at a rate of 16.5% for certain funds and family investment vehicles. Further, the region is pushing forward with regulatory measures for virtual asset trading, building on a pilot program initiated two years ago. A new framework for stablecoin regulation is also expected to be introduced, requiring issuers to maintain a physical presence in Hong Kong and hold reserves in local banks. Overall, this initiative reflects Hong Kong's strategic approach to bolster investment in blockchain and digital currencies while ensuring regulatory compliance.

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