Hong Kong will extend its 0% capital gains tax exemption on cryptocurrencies to institutional investors starting in 2026. This policy expansion will benefit hedge funds, private equity firms, and family offices, enhancing Hong Kong's appeal as a global crypto investment hub. The move aims to attract more institutional capital into the market, building on the city's existing reputation as a favorable jurisdiction for crypto investments. The new legislation aligns with Hong Kong's broader strategy to foster a crypto-friendly environment. Currently, individual investors enjoy a 0% tax rate on long-term crypto profits. By including institutions in this tax exemption, Hong Kong is expected to see increased investment from larger financial entities. Additionally, Hong Kong-listed China Financial Leasing has raised HK$86.7 million to develop a digital asset platform, further supporting the city's commitment to the digital asset ecosystem.