Government bodies from Hong Kong that are focused on attracting foreign investments traveled to Toronto, Canada to promote the city’s offshore 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) collaborated to organize an event during the Collision 2024 conference in Toronto, showcasing Hong Kong’s crypto landscape.
Emily Mo, the director of Toronto ETO, emphasized the startup-friendly regulations in Hong Kong, highlighting the lower taxes compared to Canada and the willingness to collaborate with “pre-commercial specialist technology companies.” She also mentioned the tax treaty between Canada and Hong Kong, which allows Canadian businesses in Hong Kong to receive public and private funding, aimed at avoiding double taxation and fiscal evasion on personal and corporate income.
In a related development, Hong Kong Legislative Council member Johnny Ng Kit-Chong announced the formation of the Subcommittee on Web3 and Virtual Asset Development to advance the growth of Web3 and digital assets in Hong Kong. The subcommittee is soliciting feedback on various aspects of Web3 policy development, with a focus on establishing balanced technical, legal, and regulatory frameworks that provide a conducive environment for Web3 development with clear and robust regulations.
The article also noted that in May, unlicensed crypto exchanges in Hong Kong were compelled to cease operations, leading to the closure of over 20 exchanges. Notably, several prominent global players, including OKX, Huobi HK, and Bybit, retracted their license applications. In response, one Hong Kong-based cryptocurrency exchange, Gate.HK, announced plans to relaunch its services after revamping its platform to adhere to Hong Kong’s regulatory requirements, including the implementation of Anti-Money Laundering and Counter-Terrorist Financing measures.