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TL;DR
- Hong Kong legislator proposes integrating Bitcoin in licensed exchanges for the investment immigration program.
- The revival comes after an eight-year hiatus and will restart at an entry threshold of about $3.84 million to uniquely position Hong Kong as a progressive hub.
Hong Kong Announces Crypto-Fueled Investment Immigration Scheme
Nearly eight years later, Hong Kong revived its investment immigration program.
It’s set to restart at an entry threshold of approximately $3.84 million to make Hong Kong a progressive hub for global wealth.
This resurgence program is part of Hong Kong’s broader efforts to attract family offices and wealthy people with tax breaks and potential immigration benefits.
Broadening these types of assets can qualify for tax breaks. The proposed expansion includes investments in non-traditional assets like art, wine, and digital currencies, currently not covered under the existing tax concession framework.
Raymond Wong, Tax Partner at PwC Hong Kong, said.
With the current tax regime, family offices hold substantial interest-earning assets. Hong Kong is pushing to revise this limit to reflect better financial strategies for high-valued entities.
Unlike previous iterations, the Capital Investment Entrant Scheme will not include real estate investment.
The program will thus align with broader regulatory changes regarding digital assets.
Hong Kong’s Progressive Stance in Embracing Digital Currencies
A Hong Kong lawmaker, Duncan Chiu, proposes to include Bitcoin in the program to add a touch of innovation to traditional investment channels.
As the widely known crypto, Bitcoin will provide a peculiar opportunity for investors interested in participating in the investment immigration program.
If the proposal gets the green light, the move could magnet a wave of high-net-worth investors. These investors may leverage the potential advantages of Bitcoin in a structured framework of licensed exchanges.
Moreover, the initiative demonstrates Hong Kong’s progressive stance in embracing digital currencies. It also highlights their potential and legitimacy to contribute to its economy.
The resurgence will also position Hong Kong as a regional hub for affluent individuals seeking financial stability and futuristic approaches to wealth management.
This comes out just after SEBA Secures Approval for Crypto Services in Hong Kong.
Hong Kong is Setting a Competitive Edge in the Global Stage
As it tries to establish 200 family offices by 2025, Hong Kong is set to compete with established family office hubs like Dubai and Singapore.
Singapore has over 1000 family offices, demonstrating how high the bar is for Hong Kong.
While it admits the benchmark from established family office hubs is high, Hong Kong hopes to meet or even bypass them.
The city is positive that its enhanced attractive policies and political stability will propel it to the next level.
Moreover, Hong Kong has positioned itself as a haven for Middle Eastern wealth and plans to establish fruitful regional business relations.
While the proposal is still being evaluated, the global financial community keeps a close eye on the news.
Hong Kong is optimistic that this initiative may appeal to the global elite to encourage substantive regional investment.
Do you think the potential inclusion of Bitcoin will shape the dynamics of investment immigration in Hong Kong?
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