Hong Kong Showcases Crypto, Web3 in Toronto

A Toronto ETO official stated that Canadian crypto and Web3 ventures could benefit from “lower taxes” and regulations that are designed to accommodate “pre-commercial specialist technology companies

To promote its offshore technology center for Canadian crypto and Web3 startups, Hong Kong government entities committed to attracting foreign investments and attended a tech conference in Toronto.

An event was co-hosted by the Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK) at Collision 2024 in Toronto. The event was to emphasize the crypto-centric landscape of Hong Kong.

Emily Mo, the director of the Toronto ETO, emphasized the extant regulations favorable to startups, including Hong Kong’s willingness to collaborate with “pre-commercial specialist technology companies” and lower taxes compared to Canada, during her speech at the event. Additionally, she stated:

Currently, Hong Kong and Asia are experiencing a surge in the popularity of fintech, health technology, ecological technology, and property technology.

The tax treaty between Hong Kong and Canada

Mo stated that public and private funding is permissible for Canadian businesses operating in Hong Kong.

For more than a decade, Canada and Hong Kong administrations have maintained a double taxation agreement. It was intended to prevent fiscal evasion and avoid double taxation about personal and corporate income taxes.

Johnny Ng Kit-Chong, a member of the Hong Kong Legislative Council, announced the establishment of the subcommittee on Web3 and virtual asset development on June 22. This committee aims to foster the development of digital assets and Web3 in Hong Kong.

The council seeks feedback on several critical aspects of Web3 policy development, such as the balance of technical, legal, and regulatory frameworks to establish a cohesive environment for Web3 development with clear and robust regulations.

Exodus of cryptocurrency exchanges in Hong Kong

In May, all crypto exchanges operating without a license in Hong Kong were compelled to cease operations. Although more than 20 exchanges had initially submitted applications for a crypto license, most withdrew them due to their failure to satisfy the established criteria.

A Hong Kong-based cryptocurrency exchange, Gate.HK has announced that it will relaunch its services after reconstructing its platform to meet Hong Kong’s regulatory requirements. These requirements encompass the implementation of Anti-Money Laundering and Counter-Terrorist Financing measures. According to the organization,

Once we have obtained the necessary licenses, we intend to recommence our operations in Hong Kong and make a meaningful contribution to the virtual asset ecosystem.
Notable global participants, including OKX, Huobi HK, and Bybit, have withdrawn their license applications for crypto exchanges.