Hong Kong vs Taiwan
Crypto regulation comparison
Hong Kong
Taiwan
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.
Taiwan regulates cryptocurrency under FSC guidance. In 2023, the FSC was designated as the primary regulator for virtual assets. VASPs must register and comply with AML regulations. Taiwan has a vibrant crypto community and several compliant exchanges. Crypto income is subject to income tax at progressive rates.
Tax Type
No tax
Tax Type
Income
Tax Rate
0%
Tax Rate
5-40%
Exchanges
Yes
Exchanges
Yes
Mining
Yes
Mining
Yes
Regulator
SFC (Securities and Futures Commission), HKMA
Regulator
FSC (Financial Supervisory Commission)
Stablecoin Rules
HKMA developing a licensing regime for stablecoin issuers under a 2024 bill
Stablecoin Rules
Under FSC guidance; stablecoins treated as virtual assets
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
- FSC designated as primary crypto regulator in 2023
- VASPs must comply with AML/CFT rules and register with the FSC
- Self-regulatory guidelines issued for VASP industry (2023-2024)
- Crypto income taxed at progressive rates (5-40%)
- Major exchanges include MaiCoin/MAX, BitoEX/BitoPro