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Regulatory clarity: Key to industry's healthy development EJINSIGHT


Ken Lo
August 05, 2021 06:00
In the previous column, we introduced various forms of digital assets with a particular focus on security token offerings (STOs), a new, promising and regulated means of capital raising. In this column, we will analyze the global STO landscape and opportunities for its use in Hong Kong and the Greater Bay Area (GBA).
Global STO landscape
STOs, regulatory-compliant tokens that combine features of cryptocurrency and traditional stocks, have replaced the unregulated frenze of ICOs and are expected to be a new fundraising channel for illiquid assets
Just in May this year, crypto exchange INX completed the listing of INX Limited, the first STO registered with the US Securities and Exchange Commission (SEC), raising more than US$125 million. Meanwhile, Singapore-based DBS Bank issued a US$11.3 million digital bond to professional investors. ....

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Hong Kong's Carried Interest Tax Concession – Zero % Tax! | Proskauer Rose LLP


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Following the enactment last year of the Limited Partnership Fund Ordinance, which has seen strong take up in its first eight months of operation, the new tax concession on carried interest earned from the activities of private equity funds which was proposed by the Hong Kong Government in 2020, has now been introduced. The Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 (“
Ordinance”) was enacted into law on 7 May, 2021, by way of amendment to the Inland Revenue Ordinance (“
IRO”). Under this new concession, eligible carried interest received or accrued on or after from 1 April, 2020 will be subject to zero percent profits tax. Individuals who have received carried interest or to whom any such sum has accrued, will also be eligible for a 100% deduction for those sums against their assessable income. ....

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