Jurisdiction Considerations

Jurisdiction	Crypto Status & Access	Company Vehicles & Activities	Licensing & Regulation	Tax Regime
Mainland China	Crypto assets illegal for financial use ; individuals may hold crypto as property .	Onshore corporate forms (LLC, joint-stock) exist, but cannot legally conduct crypto business.	No crypto licenses (all crypto trading, ICOs, mining are banned ). Any crypto-related activity by a company is prohibited.	25% corporate tax on income; no special crypto tax regime (crypto gains would be treated as ordinary income if ever recognized).
Hong Kong SAR	Crypto trading/holding is permitted under regulation. Courts recognize crypto as property .	Private or public limited companies, trusts, family offices, funds. Companies can hold crypto on their books.	SFC licenses required for trading platforms or asset management; HKMA provides guidelines for custody .  Stablecoin issuers will need HKMA licenses (law passed for Aug 2025) .	16.5% profits tax (8.25% on first HK$2M) ; no capital gains tax . Future fund incentive schemes may exempt crypto fund gains.
Singapore	Crypto is regulated as “digital payment tokens” under the Payment Services Act.  Allowed for companies and individuals.	Private limited companies, LLPs, family offices, funds. Firms can freely hold and transact crypto.	MAS licensing required for any exchange, wallet or crypto custodian serving Singapore . Strict AML/CFT and technology requirements apply.	17% corporate tax ; no capital gains tax. GST (9%) applies to crypto purchases (exemptions for some institutional uses).
Cayman Islands	Crypto-friendly offshore jurisdiction. No local ban on crypto.  Common domicile for funds and holding companies.	Exempted companies, LPs, trusts, foundation companies. Widely used for investment vehicles and SPVs.	Virtual Asset Service Providers (VASP) Act (2020) requires registration for crypto exchanges/custody.  Simple holding companies have no license.	0% income/corporate tax , no capital gains tax. No crypto-specific taxes, making it tax-neutral .

Hong Kong’s regulator is actively building a crypto-friendly ecosystem. Corporations often form a Hong Kong company (or trust) to hold Bitcoin, leveraging Hong Kong’s clear property status for crypto and pro-innovation policies . Mainland China, by contrast, has banned corporate crypto business , forcing Chinese firms to domicile offshore (e.g. HK, Singapore, Cayman) for any Bitcoin treasury activities. The table above compares key factors in each jurisdiction.

Legal Entity Structures

A private limited company (e.g. HK Ltd or Singapore Pte Ltd) is the most common vehicle for a Bitcoin treasury. Such a company issues shares to owners and can hold crypto on its balance sheet. A public company (listed on an exchange) can raise capital publicly; for example, Hong Kong’s HK Asia Holdings (Moon Inc.) is a public firm that adopted Bitcoin in its treasury . Alternatively, firms may use trusts or family offices to hold crypto for high-net-worth owners. In Hong Kong and Singapore, one can also form investment funds or special-purpose vehicles (e.g. a Hong Kong section-32 trust or a Cayman exempted fund) to aggregate crypto assets. Each structure has governance implications: public companies face strict disclosure rules, while private companies and trusts allow more discretion in treasury policy.

Key options include:

• Private Holding Company: Commonly used; can be incorporated in HK, SG or Cayman. Limited liability and flexible ownership.
• Public Company: Allows stock issuance. Example: HK Asia Holdings (Moon Inc) pivoted its business model to hold Bitcoin .
• Trust/Family Office: Crypto held by a trustee for beneficiaries. Trust law (common law) now recognizes crypto as property , so family trusts or private trust companies (HK/SG) can manage a Bitcoin treasury.
• Fund/VC Structure: Can be an “investment company” or limited partnership investing corporate assets in crypto. In HK/Singapore these may require regulatory approval if marketed to investors.

Compliance Requirements

• Mainland China: The People’s Bank of China and regulators have banned all crypto-related financial services . No licensing framework exists because corporate crypto activity (exchanges, token sales, OTC, mining) is illegal. Even passive treasury management would contravene current rules. Compliance in China means avoiding crypto business entirely. Recent guidance (as of 2025) confirms crypto assets have no legal status in China , and any involvement is deemed illegal “financial activity.”
• Hong Kong SAR: Crypto businesses are regulated by multiple authorities. The SFC (Securities & Futures Commission) treats crypto assets with security-like features as regulated securities. Licensed asset managers must follow the SFC’s virtual-asset fund regime. The HKMA (central bank) has issued custodial guidance for banks (segregated client accounts, risk policies) . The recent VATP licensing regime (for spot exchanges) requires platforms to get SFC approval or opt in by listing a security token. Hong Kong’s approach is permissive but requires thorough compliance: licensed entities must satisfy capital requirements, KYC/AML, and IT security as outlined in HKMA-SFC circulars .
• Singapore: Crypto “payment token” services are regulated under the Payment Services Act 2019. Any exchange, custodian, or other crypto service provider operating in Singapore must obtain a MAS license (Standard or Major Payment Institution) to serve local customers. Since 2020, MAS has enforced anti-money-laundering and technology-risk rules on crypto firms . From June 2025, MAS will tighten rules on “offshore” token service providers based in Singapore. Overall, compliance means registering with MAS, conducting AML/CFT due diligence, and following MAS notices for fintech firms.
• Cayman Islands: Cayman’s Virtual Asset Service Providers (VASP) Law (2020) regulates crypto exchanges, custodians, fund administrators, etc. Any entity offering crypto services to the public must register or license with the Cayman Islands Monetary Authority. However, a simple holding company or investment fund that only holds crypto for itself does not need a special crypto license. Cayman’s rules mostly ensure anti-money-laundering and investor protection; the jurisdiction otherwise imposes few restrictions on crypto investment, making it a popular domicile for crypto funds .

Licensing and Registration Requirements

• China (Mainland): No crypto licenses are available. Corporate crypto trading or custody is explicitly banned by law . Any attempt to register a crypto exchange or wallet company would be unlawful.
• Hong Kong:
  
  • Crypto Trading/Custody: Must obtain relevant SFC licenses. For example, a platform dealing in token securities needs SFC Type 1 (dealing in securities) and/or Type 7 (asset management) licenses.
  • Virtual Asset Trading Platform (VATP): Hong Kong issues VATP licenses (to professional-investor-only platforms) under its new regime. Licensed VATPs must meet conditions (capital, segregation, etc).
  • Stablecoins: The Hong Kong Stablecoin Ordinance (effective Aug 2025) requires stablecoin issuers to be licensed by HKMA . HKMA guidelines stipulate $25M HKD minimum capital and fully reserved backing .
  • Registration: All licensed entities must comply with Hong Kong’s AML/CFT Ordinance (AMLO), including entity registration, beneficial ownership disclosure, and ongoing audit requirements.
• Singapore:
  
  • Payment Service License (PSA): Crypto exchanges and custodians must hold a MAS DPT (Digital Payment Token) license. MAS categorizes licenses by scale (Major vs. Standard PI).
  • FX and Others: If providing cross-border crypto payments or tokens, additional licenses may apply.
  • AML/CFT: MAS Notice PSN01/PSN03 apply to crypto licensees. Firms must register with the Commercial Affairs Department for AML, report suspicious transactions, and undergo regular audits.
  • MAS has signaled strict enforcement: it will not grant licenses to firms serving only overseas customers after June 2025 , effectively banning unlicensed offshore crypto operations.
• Cayman Islands:
  
  • VASP Registration: Any entity providing crypto custody, exchange, or advisory to others must register as a VASP.
  • Fund Registration: A crypto fund would register as a local mutual fund or benefit from an Exempted LP exemption if restricted to professional investors.
  • No Local Capital Controls: Caymans has no foreign exchange restrictions or crypto-specific registry for a private holding company; companies simply register with the Cayman Registry of Companies (Exempted Company, LLC, etc.) with standard incorporation filings.

Tax Implications and Optimization

Jurisdiction	Corporate Income Tax	Capital Gains Tax	Notable Crypto Tax Points
Mainland China	25% standard CIT (enterprise income tax)	No separate capital gains tax (gains taxed as business income).	Crypto is legally ambiguous; any profit would likely be treated as ordinary income. VAT (13%) may apply to token exchanges.
Hong Kong SAR	16.5% on assessable profits (8.25% on first HK$2M).	None (no capital gains tax).	Long-term investments generally tax-free. No VAT. Upcoming tax waiver for qualifying funds (hedge/PE) to exempt crypto gains.
Singapore	17% flat CIT (partial exemptions may lower rate).	None (no capital gains tax).	GST (9%) applies to crypto purchases since 2023. Corporate profits from trading/token sales are taxable; holding crypto as long-term investment is not taxed as gain.
Cayman Islands	0% (no corporate income tax) .	N/A (no income tax at all).	No capital gains or dividend taxes. Widely used as a tax-neutral jurisdiction for crypto-holding structures . (Indirect taxes like import duties may apply, but crypto exempt.)

In summary, Hong Kong and Singapore do not tax crypto profits as capital gains , making them attractive for Bitcoin treasury. Hong Kong’s profits tax only applies if crypto dealings are deemed “business income,” while Singapore’s 17% tax is on net income. Cayman offers the most favorable tax treatment (zero). Structuring the company as an investment vehicle (rather than an operating business) can maximize tax efficiency. For example, locating a holding company in the Caymans or Singapore and routing trades through low-tax entities can legally minimize the overall tax burden.

Banking and Custody Options

• Hong Kong: Major banks are gradually opening to crypto. HKMA guidance for custodial services requires segregation of client assets and robust risk controls . Licensed crypto firms like HashKey Bank and OSL have secured bank licenses. Global custodians (e.g. BitGo, Coinbase Custody) operate through Hong Kong affiliates. Issuing a local stablecoin or operating an exchange will require bank partnerships (or trust company structures). See co-founding banks: HSBC and Standard Chartered have explored crypto services (Standard Chartered set up a European crypto JV ).
• Singapore: Banks such as DBS and OCBC have launched crypto services. DBS, for example, operates the DBS Digital Exchange (DDEx) offering crypto trading and custody services . The supply of bank accounts for crypto companies is improving under MAS regulation. Regulated custodian banks (e.g. Falcon, Sygnum in Singapore/Switzerland) provide insured multi-signature wallets. Funds often appoint licensed trustees for custody of crypto assets.
• Cayman Islands: As an offshore center, traditional Cayman banks are not crypto-specialized, so corporate treasury accounts are usually local USD accounts (e.g. with Butterfield Bank, Harneys Trust, etc.). Crypto is typically custodied via third parties abroad. Many Cayman crypto funds use established custodians (e.g. Bitstamp, Kraken, Coinbase Custody) and appoint licensed Cayman trust companies (e.g. CICG, SS&C) to administer the funds. Trust or fund structures in Cayman must satisfy the Cayman Monetary Authority’s anti-money-laundering rules, but there is no dedicated “crypto bank” in Cayman.

Best Practices for Treasury Strategy

• Allocation & Risk Management: Define a clear treasury policy (e.g. “X% of liquid assets in Bitcoin”). Diversify across coins (Bitcoin vs stablecoins vs fiat) to manage volatility. Use multi-signature wallets and hardware security modules to protect keys. Consider hedging instruments (futures, options) to manage price risk. Keep ample fiat liquidity for operations and transactions to avoid forced selling of Bitcoin in a crash.
• Security & Custody: Use qualified custodians or bank-grade solutions. HKMA standards call for segregation of client assets , independent audits, and cold storage of private keys. Many firms adopt geographically-redundant cold wallets and mandatory KYC for counterparties. Insurance (theft/cyberattack) should be reviewed, though coverage for crypto is still limited.
• Accounting and Reporting: Under IFRS (or HKFRS), cryptocurrencies are generally classified as intangible assets (IAS 38) or inventory if trading is core to business . Most crypto-holding companies use the cost model: Bitcoin is recorded at purchase cost and impaired if price falls; no gains are recognized unless IFRS revaluation model is elected (rare) . In contrast, US GAAP (ASU 2023-08) now requires fair-value measurement through P&L for crypto . In practice, a Hong Kong or Singapore Bitcoin treasury company should work with auditors to apply IFRS correctly (cost model with impairment tests). Financial statements must disclose crypto policies and valuation methods. Periodic reporting (quarterly statements) and adherence to IFRS/GAAP standards ensure transparency to stakeholders.
• Governance: Establish board oversight of crypto holdings. Form a treasury or risk committee to approve allocations and monitor compliance. Maintain detailed records of transactions and custody arrangements. Given the regulatory scrutiny, it’s best practice to document the legal basis for holding crypto (e.g. citing Hong Kong court recognition of crypto as property ). Ensure corporate minutes and policies explicitly cover crypto assets. Many firms also implement “self-imposed” limits (e.g. maximum drawdown, counterparty credit limits) and regular audits, following standard financial and fintech governance frameworks.

Related Activities: Mining, Trading, Staking

• Mining: Mainland China formally banned mining (e.g. Guizhou Circular 2021 ), so Chinese companies cannot operate mines domestically. However, Hong Kong, Singapore, and offshore jurisdictions allow crypto mining without specific bans. Some firms may register a mining company overseas (e.g. HK-registered miner) and send ASICs to power-efficient locations. Note that mining income is treated as ordinary business income for tax.
• Trading: In China, all crypto trading and exchanges are prohibited (only asset swaps via P2P are tolerated at individual level). Hong Kong and Singapore allow crypto trading via licensed platforms: firms must obtain the relevant SFC or MAS licenses to operate an exchange or brokerage. A treasury company is free to trade its own Bitcoin; but if it offers trading services to clients, a license is required. In Hong Kong, non-security tokens will be regulated under the soon-to-be-implemented VASP regime, and existing VATP licenses now require professional-client-only trading .
• Staking & DeFi: Staking (participating in proof-of-stake networks) is generally considered a crypto service. Hong Kong’s regulators now permit licensed exchanges to offer staking services to clients (with prior SFC approval). Singapore treats staking-as-a-service as a licensed crypto activity under the PSA. Cayman law does not explicitly prohibit staking, but a Cayman entity offering staking services to third parties would fall under the VASP Act and need licensing. Mining, staking or lending crypto often triggers securities laws or licensing rules, so a Chinese treasury company must be cautious to restrict operations to what local law allows and comply with each jurisdiction’s fintech regulations.

Examples of Companies

A number of public firms have adopted Bitcoin-heavy treasury models. In Greater China, HK Asia Holdings (soon Moon Inc., HKEX:1723) is celebrated as the first listed Chinese firm to hold Bitcoin on its balance sheet . New leadership shifted its strategy, resulting in an initial purchase of 18.88 BTC ($1.7M) . In Singapore, Genius Group (NYSE:GNS) branded itself as “Bitcoin-first” – a Singapore-based AI/education company that rapidly accumulated Bitcoin (100 BTC on hand, with plans for 1,000) as a reserve . Outside Asia, companies like MicroStrategy (US) and GameStop (US) have also built large BTC treasuries. For example, GameStop recently acquired 4,710 BTC ($513M) as part of its balance-sheet strategy . These examples show that corporate Bitcoin treasuries can be incorporated into diverse business models, from tech firms to retailers, as a hedge against fiat inflation and to attract crypto-minded investors .

Sources: Authoritative regulatory guides, financial news outlets, and law firm publications were used to compile the above (see cited references). The information reflects the latest (2025) rules in each jurisdiction. If regulatory changes occur, consult legal advisors for compliance.