The Hong Kong government has announced plans to allow professional investors to trade virtual asset derivatives under strict risk management frameworks. Financial Secretary Christopher Hui confirmed the Securities and Futures Commission is developing regulations to ensure orderly and transparent trading, marking a significant step in Hong Kong’s ambition to become a global digital asset hub while maintaining market stability.
Authorities will soon release an updated policy blueprint detailing Hong Kong’s vision for integrating traditional finance with blockchain innovation. The framework will focus on enhancing real-world applications of digital assets, encouraging technological experimentation by both local and international firms, and expanding tax incentives to include qualified virtual asset transactions – creating a more attractive environment for institutional participation.
The government is refining tax policies for investment funds and family offices, including provisions that would exempt certain virtual asset transactions from taxation. These changes aim to position Hong Kong as the preferred destination for digital asset management in Asia, complementing existing initiatives to foster Web3 innovation while implementing robust investor safeguards.
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