Hong Kong regulators are considering expanding tax breaks to include digital assets such as crypto and the use of artificial intelligence technology in financial sectors.
According to an October 28 Bloomberg report, that of Hong Kong Financial Services and Treasury Secretary Christopher Hui said Hong Kong regulators had proposed an extension of tax relief laws that would take into account digital asset investments.
A tax break means that Hong Kong citizens who own crypto investments could benefit from a tax reduction in the near future. Hui said the tax relief law is expected to be proposed as legislation by the end of this year.
He said the move was aimed at showing Hong Kong “more recognition of its role in asset allocation”.
The Hong Kong Securities and Futures Commission has promised to provide a finalized list of crypto exchanges that will receive full licenses by the end of the year, said Eric Yip, executive director of SFC intermediaries.
Yip added that by early 2025, regulators will form an advisory group for license exchanges to maintain cooperative efforts. The city also plans to release a comprehensive regulatory framework for crypto-focused OTC trading desks and custodians.
On the same day, the Hong Kong Exchanges and Clearing Limited published a statement that it will launch a series of virtual asset indices on November 15, 2024.
The Hong Kong index series aims to provide more benchmarks for Bitcoin and Ether prices for regions located in the Asia-Pacific time zones. These developments are part of Hong Kong’s efforts to establish itself as a “major digital asset hub” in Asia.
“By providing transparent and reliable real-time benchmarks, we seek to enable investors to make informed investment decisions, which will in turn support the development of the virtual asset ecosystem and strengthen Hong Kong’s role in as an international financial center.”
Bonnie Y. Chan, Managing Director of HKEX
Additionally, the Hong Kong government has given the green light to different regulatory agencies to begin creating policies covering the use of AI technology, anticipating a future where financial institutions and other sectors in Hong Kong Kong will be able to use AI in their operations.
“Hong Kong’s financial sector has what it takes to promote AI adoption: large markets and rich scenarios,” Hui said.
Hong Kong is currently caught in the crossfire of the technology conflict between the United States and China. Due to this rivalry, many Hong Kong consumers cannot access the world’s most popular AI service providers, which are mostly made in the United States, including OpenAI’s ChatGPT and Google’s Gemini.
On the other hand, consumers in Hong Kong also find it difficult to access Chinese-made AI technology services provided by Baidu Inc. and ByteDance Ltd. At the same time, there has been a slight increase in the use of AI in the business and financial sectors of different institutions around the world. globe.
In order to solve this problem, Hong Kong wants to develop its own AI technology. The Hong Kong University of Science and Technology is developing InvestLM, a broad language model adapted to local market rules. Once fully operational, the technology will be made available to financial services in Hong Kong.