Hong Kong Financial Secretary: Committed to building a regional Crypto Assets hub, tax-free income attracts foreign investment

Hong Kong Financial Secretary Paul Chan said in his keynote address at Consensus 2025 that as the Web3 ecosystem continues to develop, Hong Kong will "maintain a stable, open, and vibrant digital asset market," further solidifying its position as a regional hub for Crypto Assets.

"We are investing heavily in infrastructure and talent development," he said, stressing that Hong Kong not only has an environment suitable for Web3 innovation, but is also committed to providing fertile ground for the development of digital assets and fintech.

Hong Kong Science Park and Academic Collaboration Boost Blockchain Innovation

Chan pointed out that Cyberport and Science Park have become the core gathering places for Web3 innovation and fintech. At the same time, Hong Kong universities, in collaboration with industry partners, are actively nurturing a new generation of blockchain professionals to ensure that technological innovation continues to advance.

According to the latest data, the Web3 ecosystem of Cyberport has attracted more than 270 blockchain companies, with 120 new ones added in the past 17 months, indicating that Hong Kong's attractiveness in the digital asset field continues to grow.

Tax exemptions promote friendly regulation and attract international capital

As a special administrative region of China, Hong Kong has been actively promoting financial innovation in recent years and has proposed a series of policy measures to attract the encryption industry. For example, the government has proposed to exempt the profits from Cryptocurrency of hedge funds, private equity, and family investment tools from taxation to enhance Hong Kong's attractiveness to international capital.

"The key to success lies in maintaining an open, fair, balanced, and forward-looking regulatory policy to ensure that financial innovation (including Web3) can develop responsibly and sustainably," emphasized Chen Maobo.

Regulatory advancement synchronously, licensing review stricter

Despite Hong Kong's active promotion of the encryption industry, regulatory authorities still maintain a cautious attitude. As of now, the Securities and Futures Commission (SFC) has only issued 9 licenses since launching the Cryptocurrency exchange licensing scheme last year, indicating a clear trend towards stricter review standards.

In January this year, the SFC issued new operating licenses for PantherTrade and YAX, two local exchanges in Hong Kong, indicating that market supervision is steadily advancing.

The combination of AI and blockchain opens up new financial opportunities in the future

In addition to the development of the Crypto Assets market, Edward Yau particularly mentioned the combination of artificial intelligence (AI) and blockchain as an important trend worth paying attention to in the future. He believes that AI technology is evolving rapidly and being increasingly applied in the financial sector, which will lead to more innovative applications with blockchain in the future.

"The convergence of AI and blockchain will bring new application scenarios, both opportunities and challenges. Hong Kong has developed a clear policy on AI financial services," he said, adding that the government and financial regulators are closely monitoring the development of technology and the market, and are committed to establishing a transparent regulatory framework to ensure the healthy development of the industry.

It is worth noting that the Hong Kong Monetary Authority issued a dual-track policy for AI in the financial field as early as October last year, demonstrating the government's positive attitude towards the development of AI.

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