OSL CFO Hong Kong to Enhance Crypto Market with New License

Hong Kong Prepares to Revolutionize Crypto Market with New License: OSL CFO


Hongji Feng
Last updated:
June 19, 2024 02:49 EDT
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1 min read


In an exciting development for the digital asset exchange OSL, Chief Financial Officer David Wu has revealed that the Hong Kong government is considering the introduction of a new license to advance crypto regulation.
A recent report by Ta Kung Pao suggests that the Hong Kong government is planning to implement a new licensing system for crypto-fiat conversions. This move is part of a broader strategy to provide greater regulatory clarity and support for the virtual asset market.
Hong Kong’s Appeal to Investors Lies in Limited Taxation
Wu believes that the introduction of a new license will enhance investor confidence and attract more international investors to the burgeoning market. This regulatory advancement is seen as a crucial step in solidifying the region’s position as a leading hub for virtual assets in Asia.
He also highlighted several advantages of Hong Kong in the global competition, starting with its favorable tax environment. Unlike Japan and Australia, which impose capital gains taxes on virtual assets, Hong Kong does not impose such taxation.
This favorable tax environment could make the region a highly appealing destination for global investors, especially considering that Japan’s comprehensive tax rate can reach 50% and Australia’s 40%, which significantly impacts investment returns.
A Supportive and Open Crypto Market
Another advantage that Wu mentioned is the supportive attitude of local banks. Due to past incidents of money laundering involving virtual assets globally, banks are understandably cautious about the associated risks.
This caution has made it challenging for institutional investors in virtual assets to open bank accounts in many countries. In contrast, Hong Kong banks have adopted a more open-minded approach, welcoming institutions specializing in investing in virtual assets and facilitating smoother banking operations for these entities.
The report indicates that the development of regulations has bolstered investor confidence with clearer guidelines and services. Regulated and supervised platforms could provide retail investors with better protection.
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