Hong Kong vs Israel
Crypto regulation comparison
Hong Kong
Israel
Legal
Legal
Hong Kong has positioned itself as a major crypto hub in Asia with a comprehensive licensing regime. The SFC implemented a mandatory licensing framework for virtual asset trading platforms (VATPs) effective June 2023. Hong Kong has no capital gains tax, making it attractive for crypto investors and businesses.
Cryptocurrency is legal in Israel and treated as a taxable asset. The Israel Tax Authority classifies crypto as property, subject to 25% capital gains tax (or up to 50% for significant shareholders or high earners). Israel has a vibrant blockchain ecosystem with many startups and R&D centers.
Tax Type
No tax
Tax Type
Capital gains
Tax Rate
0%
Tax Rate
25-50%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
SFC (Securities and Futures Commission), HKMA
Regulator
ISA (Israel Securities Authority), ITA (Israel Tax Authority), CTMFA
Stablecoin Rules
HKMA developing a licensing regime for stablecoin issuers under a 2024 bill
Stablecoin Rules
No specific stablecoin regulation; ISA exploring digital asset framework
Key Points
- Mandatory VATP licensing regime under the AMLO effective June 1, 2023
- No capital gains tax in Hong Kong; profits tax applies only to business profits
- SFC approved spot Bitcoin and Ether ETFs for retail investors in April 2024
- HKMA consulting on stablecoin issuer licensing under a dedicated bill
- Hong Kong actively competes with Singapore as Asia's leading crypto hub
Key Points
- Capital gains tax of 25% on crypto profits (up to 50% including surtax for high earners)
- Israel Tax Authority classifies cryptocurrency as property, not currency
- ISA is developing a regulatory framework for digital asset trading platforms
- AML/KYC requirements apply to crypto service providers under CTMFA supervision
- Israel has one of the highest densities of blockchain startups globally