Hong Kong has officially approved Bitcoin (BTC) and Ethereum (ETH) as eligible proof of assets for its investment migration program. This groundbreaking policy allows qualified applicants to use these cryptocurrencies to meet the program's requirement of holding HKD 30 million (~USD 3.8 million) in net assets.
Key Policy Highlights
- Expanded Asset Options: Previously limited to traditional assets like stocks and bonds, the inclusion of cryptocurrencies reflects Hong Kong's progressive stance on digital assets.
- Global Talent Attraction: The move positions Hong Kong as a forward-thinking financial hub for crypto investors worldwide.
- Dual Verification System: Creates a "chain-on-chain-off" asset validation mechanism to enhance market transparency.
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Industry Reactions
According to Jeffery Ding, Chief Analyst at HashKey Group:
"This policy opens doors for global crypto holders, boosts market liquidity, and reinforces Hong Kong's position as a Web3 innovation center. It significantly broadens the applicant pool while enriching our capital markets."
Implementation Challenges
| Challenge | Description |
|---|---|
| Identity Verification | Crypto's anonymous nature complicates wallet-to-identity matching |
| Asset Documentation | Early investors lack traditional paper trails for asset provenance |
| Exchange Compliance | Some trading platforms have incomplete or questionable records |
| Price Volatility | Crypto's price swings may affect application stability |
Program Requirements
Applicants must:
- Hold ≥HKD 30M in approved assets (now including BTC/ETH) for 6+ months pre-application
- Provide verifiable proof from regulated exchanges or cold wallets
- Pass enhanced due diligence checks
Current Adoption Trends
- First batch processed in October 2023 (~1 month review period)
- Two successful cases already approved
- Growing interest from high-net-worth crypto holders
Why This Matters for Hong Kong
This strategic decision:
- Diversifies investment sources
- Accelerates Web3 ecosystem growth
- Enhances international competitiveness
- Provides a regulatory blueprint for other jurisdictions
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FAQs
Q: Which cryptocurrencies qualify?
A: Currently only Bitcoin (BTC) and Ethereum (ETH) are approved.
Q: How is asset value calculated?
A: Based on 6-month average market prices to mitigate volatility impacts.
Q: Are there additional compliance steps?
A: Yes, applicants must provide transaction histories and pass anti-money laundering checks.
Q: Does this apply to other visa types?
A: No, only the Capital Investment Entrant Scheme is affected.
Q: What if crypto values drop below threshold?
A: Applicants may need to supplement with other approved assets.
Q: How does this benefit Web3 startups?
A: Attracts talent/investors while validating blockchain's institutional role.