HONG KONG, Nov 28 Reuters Hong Kong plans to waive tax on investment gains from cryptocurrencies and other alternative assets for hedge funds, private equity funds and certain family offices as the city strives to enhance its appeal as a wealth management hub.

In a consultation paper circulated this week, seen by Reuters, the Financial Services and the Treasury Bureau proposes expanding the capital gains tax exemptions to cover overseas properties, carbon credits, private credit, virtual assets, among other assets, applicable to privatelyoffered funds and eligible single family offices39; investment vehicles.

Taxation is one of the key considerations for the wealth asset management sector to decide where to base their operations, said the proposal, adding that the government was committed to creating an environment conducive to the wealth management industry.

The Financial Times first reported the proposal.

Hong Kong has been stepping up efforts to promote itself as a leading global digital asset hub, aiming to attract new sources of capital amid ongoing economic and other tensions between China and the West.

The proposal comes as Bitcoin surged to record highs and sets its sights on the psychologically key 100,000 level, bolstered by hopes that U.S. Presidentelect Donald Trump39;s administration will create a friendly regulatory environment for cryptocurrencies.

Hong Kong is Asias largest hedge fund hub and ranked second in terms of capital under management in…