Hong Kong Web3 in Toronto has been a trending topic lately. Canadian crypto and Web3 startups, including those using services like Binance Web3 Wallet, could benefit from “lower taxes” and regulations that facilitate “pre-commercial specialist technology companies.” According to a Toronto ETO official, Hong Kong government representatives visited a tech conference in Canada, bringing Hong Kong Web3 to Toronto to promote their offshore technology hub, targeting Canadian crypto and Web3 startups.
The Hong Kong Economic and Trade Office in Toronto (Toronto ETO), Invest Hong Kong (InvestHK), and StartmeupHK (SMUHK) co-hosted an event at Collision 2024 in Toronto. The event aimed to showcase Hong Kong’s crypto-centric environment, which supports major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Emily Mo, director of the Toronto ETO, highlighted Hong Kong’s favourable startup regulations, including lower taxes than in Canada and Hong Kong’s openness to collaborating with “pre-commercial specialist technology companies.” She emphasized:
“There is a creative mindset on Web3/virtual assets developments. Fintech, health technology, green technology and property technology, etc, are trending in Hong Kong and Asia these days.”
Tax Treaty Benefits from Hong Kong Web3 in Toronto
Mo noted that Canadian businesses operating in Hong Kong could access both public and private funding. The longstanding tax treaty between Canada and Hong Kong, which has been in place for over a decade, aims to avoid double taxation and prevent fiscal evasion concerning personal and corporate income taxes.
On June 22, Hong Kong Legislative Council member Johnny Ng Kit-Chong announced the creation of the Subcommittee on Web3 and Virtual Asset Development. This subcommittee aims to promote the growth of Web3 and digital assets in Hong Kong. The council seeks input on various critical aspects of Web3 policy development, including the balance of technical, legal, and regulatory frameworks to create a coherent environment for Web3 development with robust and clear regulations.
Regulatory Challenges for Crypto Exchanges in Hong Kong
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In May, Hong Kong mandated the shutdown of all crypto exchanges operating without a license. Over 20 exchanges initially applied for a license, but most withdrew their applications after failing to meet the required standards. Gate.HK, a Hong Kong-based cryptocurrency exchange, announced plans to relaunch its services after revamping its platform to comply with Hong Kong’s regulatory requirements. These include establishing Anti-Money Laundering and Counter-Terrorist Financing measures. The company stated:
“Gate.HK is actively working on the aforementioned overhaul. We plan to resume our business in Hong Kong in the future and contribute to the virtual asset ecosystem after obtaining the relevant licenses.”
Prominent global players such as OKX, Huobi HK, and Bybit were among the exchanges that retracted their license applications.
Hong Kong Web3 in Toronto: Opportunities for Hong Kong Web3 in Toronto
According to the cryptocurrency update, the event in Toronto underscored Hong Kong’s appeal as a hub for Web3 innovation, which includes significant opportunities for businesses involved with BTC and ETH. For Canadian startups, this represents a unique opportunity to leverage Hong Kong’s favourable tax environment and supportive regulatory framework concerning blockchain. The focus on Web3 technologies aligns with global trends, making Hong Kong an attractive destination for companies looking to expand their operations.
The Toronto ETO’s efforts, in the crypto update, highlight the potential for collaboration between Canadian and Hong Kong businesses in the Web3 space. As more startups look to global markets for growth, the synergy between Hong Kong Web3 in Toronto becomes increasingly significant. By fostering an environment conducive to technological innovation and regulatory compliance, Hong Kong positions itself as a leading hub for Web3 and digital assets.
In summary, the promotion of Hong Kong Web3 in Toronto reflects a strategic initiative to attract Canadian crypto and Web3 startups. With advantageous tax policies, supportive regulations, and a clear focus on fostering innovation, Hong Kong presents a compelling case for businesses looking to expand their footprint in the Web3 arena. The collaboration between Toronto ETO, InvestHK, and SMUHK at Collision 2024, in the cryptocurrency news, is a testament to the growing importance of global partnerships in driving the future of technology and digital assets.
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