Hong Kong is one of the most developed financial centers in Asia and it is fast evolving as a preferred location to start a cryptocurrency company. Blockchain and cryptocurrency investment firms have entered the market and the city has a large number of investors interested in these fields that represent the evolution of the financial sector.
Investors who want to open a cryptocurrency company in Hong Kong can follow this guideline presented by the experts at our law firm in Hong Kong.
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Cryptocurrency companies in Hong Kong
Hong Kong’s official position on Bitcoin and other cryptocurrencies is that they are seen as a virtual commodity, and not as a currency. Thus, cryptocurrencies are not regulated per se, however, experts believe that the regulatory regime is likely to change as these virtual currencies become more popular.
Hong Kong’s Government encourages this business field and the monetary authority is testing its own blockchains for finance, applications, and tracking. Blockchain remains one of the priorities of Hong Kong’s economic development agency, along with fintech. Hong Kong officials have a prudent approach to the regulation of cryptocurrencies, maintaining a strong focus on small investors and how the evolution of these free markets could impact them.
Hong Kong’s Financial and Securities Commission is the body entrusted with the regulation of securities and futures markets. Other authorities relevant to the cryptocurrency sector are the Hong Kong Monetary Authority, the Financial Treasuries Bureau and the Customs and Excise Department. One of our lawyers in Hong Kong can give you detailed information on the applicable laws and regulations in this field.
Opening a cryptocurrency company in Hong Kong
Investors who want to start a cryptocurrency company in Hong Kong can incorporate a private limited liability company. The setup process is quick and simple and investors do not have to deposit a mandatory minimum share capital.
Hong Kong’s tax regime is a low one, making the city very attractive from a taxation point of view, including for cryptocurrency companies. These types of legal entities are subject to income tax, regardless of the form in which they receive and make payments. One of our attorneys in Hong Kong can give you detailed information on taxation.
Contact our law firm in Hong Kong for more details on how to start a cryptocurrency business.