Hong Kong is reshaping its crypto strategy, moving closer to its vision of establishing a global digital asset hub. In the latest development, the regulators are planning to offer crypto tax breaks, while also building a clearer regulatory framework for stablecoins.
Family Offices to Benefit from Hong Kong’s Crypto Tax Reforms
According to the latest reports, Hong Kong’s financial secretary, Paul Chan, has announced new crypto tax concessions for family offices. The government is expected to introduce an amendment bill in the first half of 2026, with the crypto tax changes taking effect in the 2025–26 tax year.
The city intends to offer tax benefits on crypto investments, strengthening its position in the global crypto space. The move focuses on providing clearer rules and better tax treatment for the nearly 3,300 single-family offices operating in Hong Kong. This will also help encourage more global investors to set up in the city.
For Chan, this crypto tax development is a critical step towards accomplishing the city’s crypto hub vision. Officials believe that clearer tax rules and better treatment for crypto investments will attract more wealthy families to set up and expand their operations in the city.
How Hong Kong Stacks Up Globally
Significantly, Hong Kong’s crypto tax proposal aims to attract family office investments, which matches the global trend. Countries across the world are taking diverse approaches. Singapore treats cryptocurrencies as taxable property, which does not provide any special tax exemptions for family offices.
At the same time, Switzerland offers favourable but canton-dependent rules. Dubai, being a more crypto-friendly region, offers zero tax rules for eligible entities. There are also rumors that the US will introduce a zero crypto tax rule.
Meanwhile, Hong Kong establishes its identity through its choice to classify cryptocurrencies as assets like precious metals and commodities. The city positions cryptocurrencies as an investment option through its alternative investment framework, which targets wealthy families who maintain worldwide asset distribution.
Advancing Stablecoin Regulatory Framework
In addition to Hong Kong’s crypto tax concessions, the city is also preparing to launch a clear regulatory framework for stablecoins. As CoinGape reported, Hong Kong will introduce a licensing regime for stablecoin issuers in March
Amid these strategic developments, Hong Kong’s stablecoin firm, RedotPay, is preparing to go public. CoinGape reported that RedotPay is considering an IPO, raising over $1 billion.
The Hong Kong Monetary Authority (HKMA) has reportedly outlined plans to supervise fiat-backed tokens operating in or marketing to the city. Under the proposed framework, issuers would need to meet strict requirements around asset reserves, redemption rights, and governance.
Source: https://coingape.com/hong-kong-moves-closer-to-crypto-tax-cuts-amid-stablecoin-regulatory-framework/
