Singapore is weighing a 0% carried-interest tax rate for hedge funds and asset managers, a move aimed squarely at outflanking Hong Kong as Asia's premier financial hub. The Monetary Authority of Singapore (MAS) is leading the negotiations, and the proposal has direct implications for crypto-focused funds that have been weighing where to set up shop.
The tax proposal
The proposed cuts would zero out the tax on carried interest — the performance fee fund managers take home. That's a sharp edge over Hong Kong, which already offers a 0% rate for qualifying funds but has been slow to clarify how the rule applies to crypto assets. For digital asset managers, the difference could be decisive.
Why crypto funds care
Hong Kong spent the past two years courting crypto firms with a new licensing regime and retail trading rules. But its tax treatment of crypto gains remains murky. Singapore's move would remove that uncertainty entirely for fund managers who qualify. A 0% carried-interest rate means more of the upside stays with the manager — a powerful draw for the talent-heavy crypto hedge fund world.
MAS in talks
The Monetary Authority of Singapore is actively negotiating the terms with industry representatives. The regulator has been cautious on crypto retail access, but this signals a more welcoming stance for institutional players. The timing isn't accidental: Hong Kong's political turbulence and slower tax clarity have given Singapore an opening.
The tax cuts are still under discussion, with no final deal announced. A formal proposal could land later this year. For now, fund managers are watching the MAS closely — and some are already reconsidering their Hong Kong plans.
