Hong Kong is contemplating including virtual assets in a new range of tax concessions as stated by Christopher Hui, the Secretary for Financial Services and the Treasury, during the Hong Kong Fintech Week on October 28. This move is aimed at institutional investors.

The government is also considering other investment types for these tax breaks, such as immovable property located outside Hong Kong, emission allowances, insurance-linked securities, interests in private entities, and private credit investments.

While details on the specific benefits and eligibility requirements are yet to be clarified, Hui highlighted that extending tax incentives to a broader array of assets could enhance the market dynamics. He further noted that regulatory developments are being planned for stablecoin issuers, OTC trading services, and custodians.

"By expanding the availability of tax concessions to this wider scope of assets… we will be able to add an extra emphasis and pull to this market on the development front," Hui remarked.

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