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Crypto firms are flocking back to Hong Kong. After years of moving operations to Singapore, many companies are now returning, showing a renewed confidence in Hong Kong’s crypto market. The 27th anniversary of Hong Kong’s return to China is near, and its financial sector is booming. The SAR government aims to make Hong Kong a global crypto hub. Since this goal was set in 2022, the city has hosted numerous digital economy conferences, drawing top industry leaders. Hong Kong’s tax system is a major draw for investors. Unlike Japan and Australia, where investors face high asset appreciation taxes, Hong Kong offers a much friendlier tax environment. No asset appreciation tax means better returns for global investors. In Japan, comprehensive tax rates can reach 50%, and in Australia, they can hit 40%. This tax benefit makes Hong Kong an attractive destination for crypto investments. “Hong Kong has great advantages in developing the virtual asset market.” Hu Zhenbang, the CFO of OSL Group His company, like many others, has seen the benefits of returning to Hong Kong. The SAR government’s policies, such as the supervision of licensed platforms introduced last year, have boosted global investor confidence. This has led to a surge in talent and tech companies coming back to the city. Licensing boosts confidence Hong Kong’s financial market has weathered many storms, including the 1997 Asian financial crisis and the 2008 financial crisis. The introduction of a licensing system for crypto platforms has been a game changer. The city has also been proactive in developing tokenized securities and stablecoins. Last year, the Hong Kong Monetary Authority (HKMA) issued NT$800 million in tokenized green bonds. This move was well received by the industry. The HKMA also created a stablecoin issuer sandbox, which has gained huge interest. The collaboration between the Hong Kong…

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Filed under: News - @ June 29, 2024 4:24 pm