Hong Kong extends its 0% crypto tax exemption to institutions starting in 2026.
Hedge funds and private equity firms will benefit from the tax exemption.
Hong Kong-listed China Financial Leasing raised funds to invest in digital assets.
Hong Kong is set to become even more attractive to crypto investors by extending its 0% capital gains tax policy to institutions in 2026. Hedge funds, private equity firms, and family offices will now benefit, making Hong Kong a prime destination for institutional crypto investments in the coming years.
Hong Kong Extends 0% Crypto Tax Exemption to Institutions in 2026
Hong Kong is solidifying its position as a global crypto hub by extending its 0% capital gains tax policy. In 2026, the government will expand the existing crypto tax exemptions to include institutions. Previously, individual investors benefited from this tax exemption on long-term crypto profits.
HONG KONG'S 0% CRYPTO TAX STATUS FOR 2026
Hong Kong remains one of the world’s most attractive crypto jurisdictions thanks to its lack of a formal capital gains tax. For individual investors, long-term buy-and-hold crypto profits are effectively taxed at 0%.
Now, the… https://t.co/xcCTfnGOLa pic.twitter.com/0s5PV0iVLK
— CryptosRus (@CryptosR_Us) February 5, 2026
Now, hedge funds, private equity firms, and family offices will also enjoy tax relief on Bitcoin and other digital assets. The new legislation aims to foster a crypto-friendly environment, making Hong Kong an even more attractive jurisdiction for institutional investors.
Currently, the 0% tax rate on cryptocurrency has drawn significant attention from global investors. This policy has already helped position Hong Kong as one of the most attractive jurisdictions for crypto investments. The new tax exemption for institutions is expected to bring further capital into the market, particularly from larger financial entities that typically manage considerable crypto assets.
Hong Kong’s Expanding Crypto-Friendly Environment
The expansion of Hong Kong’s tax policy aligns with its broader efforts to create a conducive environment for digital assets. Institutions such as hedge funds and private equity firms, which were previously excluded from the tax exemptions, will now benefit from favorable tax treatment. This move is seen as a key step in making Hong Kong a primary destination for institutional cryptocurrency investments.
In addition, Hong Kong-listed China Financial Leasing raised HK$86.7 million to build a next-generation digital asset platform. The platform will support Bitcoin, Ethereum, NFTs, and decentralized finance (DeFi), reflecting Hong Kong’s commitment to the growing digital asset ecosystem. As more companies and institutions flock to Hong Kong for its 0% crypto tax status, the city is likely to witness further growth in the blockchain and cryptocurrency space.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
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