Key Insights:
- Hong Kong removes capital gains tax on crypto, strengthening its position as a regulated digital asset hub.
- U.S. senators advance a bipartisan bill granting the CFTC oversight of digital commodity spot markets.
- Coinbase and asset managers push tokenized stocks and crypto ETFs deeper into traditional finance.
Hong Kong’s crypto capital gains tax has been officially set at zero, according to market updates shared by industry commentators. The move arrives as lawmakers, institutions, and crypto firms worldwide advance regulatory frameworks, signaling a broader shift toward structured digital asset adoption.
Hong Kong Confirms Zero Capital Gains Tax
According to a widely shared post from the Investments_CEO X account, Hong Kong has confirmed that there will be 0% Capital Gains Tax on Bitcoin and Crypto assets, Crypto0 %CGT.
This policy places Hong Kong amongst the most favourable jurisdictions for Digital Asset investors from a tax perspective, helping to solidify its status as a regulated Financial Centre that is focused on Digital Assets. The clarification reduces uncertainty for all Trader/Fund Operators and long-term holders of Bitcoin or Crypto assets.
In addition, Hong Kong’s Crypto Capital Gains Tax Reform is part of its comprehensive Licensing Regime for Virtual Asset Platforms, whereby Regulators are focused on establishing Compliance Standards, Custody Rules, and Investor Protection while supporting Responsible Innovation.
U.S. Senate Advances Crypto Market Structure Bill
The momentum that has built up throughout the country regarding regulation of the cryptocurrency market has made its way to the United States, where lawmakers are preparing to vote on legislation addressing the regulatory framework for the cryptocurrency market.
According to Ash Crypto, if passed into law, this legislation would create much less room for market manipulation and other unscrupulous practices associated with cryptocurrencies; however, these claims have yet to be verified.
Senators Cory Booker (D-NJ) and John Boozman (R-AR) first introduced this bipartisan legislation back in November 2025. This new legislation assigns the CFTC as the primary regulatory authority over all digital commodity spot markets, including all Bitcoin exchanges.
Due to an inclement winter storm in Washington, D.C., the markup hearing for the Senate has been postponed. With the rescheduling now set for January 29, online communications about the bill have been mostly filled with optimism regarding potential improvements to clarity surrounding the regulatory environment for cryptocurrencies in the United States.
Coinbase Pushes Vision for On-Chain IPOs
The vision described by Coinbase CEO Brian Armstrong in a Post On X- according to CryptoPulse – provides for Fully On-Chain IPO’s.
In his proposal, Brian noted that because of current regulations on IPO’s, high-quality Companies have to remain Private for too long.
With the proposed use of Smart Contracts to Issue, Trade, and Settle Tokenized Equity, there are several advantages.
Cost savings of issuing and listing may be achieved by reducing the Time Required for a company to list & providing early access to Liquidity.
Coinbase is currently working on Pilot Programs that will eventually enable Tokenized Shares to be created on the Blockchain, where it is expected that Web3-Native Companies will be able to conduct Their IPO’s within two to three years.
The Biggest Disadvantage Remains to be the Regulation because the definition of Tokenized Equity varies from one country to another.
Institutional Growth Signals Continue
As the Avalanche Foundation expands its Institutional Adoption with the introduction of VanEck’s AVAX ETF on the Nasdaq, institutional investor confidence in Avalanche as a scalable blockchain solution is growing.
In addition to the increased interest among institutional investors for regulated cryptocurrency exposure, the growth of ETF listings indicates the continued integration of blockchain-based assets into traditional finance.
These developments, along with the proposed changes to Hong Kong’s Capital Gains Tax, reflect a coordinated global transition toward greater clarity and structure for all participants in blockchain-based Finance.
Conclusion
The zero crypto capital gains tax rating qualifies Hong Kong for additional impetus as a transformational market interested in regulations that will eventually lead to a global marketplace.
The momentum created by these actions supports a transitional regulatory structure similar to the U.S. Congress’s proposed legislation on tokens, IPOs, and ETFs.
The joint action of the mentioned parties continues to define and determine how the digital asset will be integrated into the overall financial world.
