If you are a long-term resident of Hong Kong you have probably been deemed a permanent resident for tax purposes. Should you move and become a resident, your tax affairs will come under the jurisdiction of your country of residence.
Mining is beyond the scope of most individuals and calls for significant investment in time, money, and equipment. However, if you are declaring yourself as a miner you are required to pay income tax on your profits, but you may also deduct your expenses, such as electricity, maintenance fees, and the cost of your hardware.
Crypto financial services in Hong Kong
Fin services – retirement planning
Most retirement and pension funds worldwide deem cryptocurrencies too volatile to become part of long-term retirement schemes. There is little certainty on this at present.
Fin services – banking
Global banking giant Standard Chartered Bank has announced that its innovation arm, SC Ventures, will operate a cryptocurrency brokerage and exchange platform in a joint venture between SC Ventures and BC Technology Group (0863.HK), a Hong Kong-based investment company specializing in digital assets. BC Technology operates OSL, the first cryptocurrency exchange to be licensed by Hong Kong’s Securities and Futures Commission.
Fin Services – Defi
Hong Kong has highly regulated banks and financial services, but there is no real movement in this area.
Bitcoin in Hong Kong
Hong Kong doesn’t officially recognize cryptocurrency as a payment method. Despite the efforts of a few individual retailers, the city is not the best place to spend your crypto wealth.
You won’t be able to reduce your tax by gifting your cryptocurrency. Whatever gain you have made on it will be taxable up to the point at which you gift it.