Hong Kong is making waves in crypto circles with a seemingly jaw-dropping policy: zero percent capital gains tax on Bitcoin. The problem? This isn’t exactly new. Hong Kong has never imposed a general capital gains tax on long-term investment gains, crypto or otherwise.
The real development here is more targeted and, frankly, more interesting. It involves proposed legislation aimed at extending tax exemptions to hedge funds, private equity vehicles, and qualifying family offices that invest in virtual assets.
What’s actually changing
In November 2024, the Financial Services and the Treasury Bureau released a consultation paper. The proposal would extend existing tax exemptions to privately offered funds and family offices investing in digital assets alongside other alternative investments.
Hong Kong’s 2025-2026 Budget doubled down on this direction, announcing plans to integrate virtual assets into preferential tax regimes designed for funds. Legislative drafts are expected sometime in 2026.
