A delegation from various government entities in Hong Kong traveled to Toronto, Canada, to promote Hong Kong’s technology hub for Canadian crypto and Web3 startups. The Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK) jointly organized an event at the Collision 2024 conference in Toronto, focusing on Hong Kong’s crypto-focused landscape.
During the event, Emily Mo, the director of Toronto ETO, emphasized the startup-friendly regulations in Hong Kong, including lower taxes compared to Canada and the government’s willingness to collaborate with “pre-commercial specialist technology companies.” She also highlighted the tax treaty between Canada and Hong Kong, which allows Canadian businesses in Hong Kong to receive public and private funding.
The governments of Canada and Hong Kong have maintained a double tax agreement for over a decade to prevent double taxation and fiscal evasion concerning personal and corporate income taxes.
In another development, Johnny Ng Kit-Chong, a member of the Hong Kong Legislative Council, announced the establishment of the Subcommittee on Web3 and Virtual Asset Development. The subcommittee aims to promote the development of Web3 and digital assets in Hong Kong. It seeks feedback on various aspects of Web3 policy development, including creating a balanced environment with robust and clear regulations.
In May, all crypto exchanges operating without a license in Hong Kong were compelled to shut down. Although more than 20 exchanges initially applied for a crypto license, most withdrew their applications due to non-compliance with the set requirements. One Hong Kong-based cryptocurrency exchange, Gate.HK, announced plans to relaunch its services after restructuring its platform to meet Hong Kong’s regulatory requirements, such as implementing Anti-Money Laundering and Counter-Terrorist Financing measures. Notable exchanges, including OKX, Huobi HK, and Bybit, retracted their license applications as well.
Overall, Hong Kong is actively working to attract foreign investments in the crypto and Web3 sectors, showcasing its favorable regulations and commitment to supporting startups in these industries.