Hong Kong Accepts Bitcoin, Ethereum as Proof of Wealth

Hong Kong’s Investment Visa Accepts Bitcoin (BTC) and Ethereum (ETH)

The recent announcement reveals that high-net-worth individuals now have the option to use their cryptocurrency holdings to meet the HK$30 million (approximately $3.8 million) financial requirements needed to qualify for Hong Kong’s Capital Investment Entrant Scheme (CIES).

Previously, only traditional financial assets, such as stocks, bonds, and real estate, were acceptable forms of proof of wealth under the CIES. However, with this policy shift, Bitcoin and Ethereum have been added as eligible assets, providing new opportunities for crypto investors to gain residency in Hong Kong.

Crypto Asset Valuation and Eligibility

As part of the CIES, applicants must adhere to a strict process for verifying their cryptocurrency assets. Certified accountants will evaluate the applicant’s digital assets based on the market-established prices at the time of application. This ensures transparency and prevents fraudulent data submissions.

To meet these compliance standards, crypto assets must be held either in cold wallets or on regulated exchanges, mitigating risks associated with market fluctuations and enhancing security. Applicants will also need to provide evidence of ownership, such as transaction histories, to prove the legitimacy of their assets.

Implications for Bitcoin as a Strategic Reserve

Hong Kong legislator Johnny Ng Kit-chong has expressed support for the rapid adoption of cryptocurrencies, advocating for Bitcoin to be considered as a strategic reserve asset for Hong Kong. Kit-chong emphasized that Hong Kong must keep pace with global technological advancements, especially following the recent approval of crypto regulations in the United States.

He suggested that Hong Kong should accelerate the adoption of stablecoins and consider easing restrictions on virtual asset trading platforms. Kit-chong also recommended utilizing Hong Kong’s role in the Greater Bay Area to launch a stablecoin piloting program aimed at facilitating international trade.

Furthermore, he proposed the establishment of a Digital Asset Office to oversee the expansion of virtual assets and AI development, positioning Hong Kong as a leader in the digital asset space.

Hong Kong’s Commitment to Digital Assets and Regulatory Structure

By recognizing Bitcoin and Ethereum as eligible assets for the CIES, Hong Kong demonstrates its commitment to integrating digital assets into standard financial operations. The city continues to develop a robust regulatory framework for crypto activities as part of its broader strategy to become a global hub for digital finance.

In addition to the CIES updates, the Hong Kong government has implemented licensing structures designed to monitor digital asset service providers and protect investors. However, while cryptocurrencies are accepted as proof of wealth, they are not yet directly recognized for investment purposes under the CIES regulations.

The CIES program mandates that applicants must invest their HK$30 million in approved financial assets, including stocks, bonds, and government-accepted instruments. As a result, cryptocurrencies like Bitcoin and Ethereum can be used to demonstrate wealth but cannot be directly invested in under the current scheme.

Conclusion

Hong Kong’s decision to accept Bitcoin (BTC) and Ethereum (ETH) as proof of wealth under the Capital Investment Entrant Scheme marks a significant milestone in the global acceptance of cryptocurrencies. By recognizing digital assets as legitimate forms of wealth, Hong Kong strengthens its position as a leader in the digital financial market.

However, while crypto assets can help applicants meet the wealth requirements for residency, they cannot be directly invested in under the CIES regulations. As Hong Kong continues to develop its regulatory framework, the city’s commitment to digital assets remains clear, offering new opportunities for crypto investors and paving the way for future innovation in the financial sector.