Hong Kong Investment Immigration New Policy: Encryption Assets Open New Opportunities

Recently, the Hong Kong financial market has welcomed a striking piece of news. A practicing accountant revealed on a social platform that the Hong Kong Investment Promotion Agency has approved an investment immigration application that uses Ethereum as a proof of assets worth 30 million HKD. This is not only the first time Hong Kong has accepted encryption currency as proof of assets for investment immigration, but it also marks a broader recognition of encryption assets in the traditional financial sector.

This policy originates from the new Capital Investment Entrant Scheme (CIES) launched by the Hong Kong government in 2023. The scheme aims to attract external investors and capital, further consolidating Hong Kong's status as an international asset and wealth management center. According to the scheme's regulations, qualified investors can obtain a stay visa after investing HKD 30 million in Hong Kong, with the opportunity to apply for Hong Kong permanent resident status after residing for 7 years.

The application process is relatively straightforward, but there are still many details to pay attention to. First, applicants need to hire a Hong Kong professional accountant at their own expense to issue a net asset verification report. It is worth mentioning that there are no restrictions on the location and composition of the assets; it only needs to be proven that the applicant has continuously held no less than 30 million HKD in net assets or net capital within the 6 months prior to the application.

Once approved, applicants must invest no less than 30 million HKD in designated asset categories within 6 months. Among these, 27 million HKD can be invested in financial assets such as Hong Kong stocks, bonds, funds, etc.; 3 million HKD must be allocated to the "Capital Investment Entrant Scheme Investment Portfolio" to support the development of innovation technology and key industries in Hong Kong.

For cryptocurrency holders, the biggest challenge may not be the scale of funds, but rather proving the legitimacy of the source of the funds. Accountants and relevant institutions often require the original source of funds used to purchase the cryptocurrency and transaction records, which may pose difficulties for some long-term holders.

Nevertheless, Hong Kong's acceptance of cryptocurrency as proof of assets for investment immigration not only reflects its open attitude but also further consolidates Hong Kong's position in the field of financial innovation. This initiative is expected to attract more talent and capital from the cryptocurrency sector, driving the development of Hong Kong's Web3 industry.

In recent years, Hong Kong has introduced a series of policies to attract foreign talent, including optimizing the existing talent admission scheme and launching a new high-skilled talent scheme. These measures aim to address the issue of population loss in Hong Kong. Data shows that before 2022, Hong Kong's resident population had declined for five consecutive years, dropping from 7.365 million in 2019 to 7.224 million in 2022.

Currently, these talent recruitment policies have achieved initial results. In 2024, the number of successful approvals for various talent entry visa programs in Hong Kong reached nearly 140,000, an increase of 4,000 from the previous year. Since the launch of the "New Capital Investor Entry Program", more than 750 applications have been received, with a total expected investment exceeding HKD 22 billion.

Hong Kong's support for the Web3 sector continues to strengthen. In terms of virtual assets, Hong Kong has found a balance between regulation and innovation. In 2024, Hong Kong approved the issuance of six virtual asset spot ETFs, significantly increasing investor participation. Currently, three Bitcoin spot ETFs hold a total of 4,330 Bitcoins, with a total net asset value of $425 million; the Ethereum spot ETF holds 2,083 Ethereums, with a net asset value of $56 million.

In terms of trading platforms, Hong Kong has approved 9 virtual asset trading platforms, and over 31 brokers and 36 asset management institutions have received relevant license upgrades. The Hong Kong Monetary Authority has also launched the Ensemble project to explore the combination of physical asset tokenization and central bank digital currencies.

Looking ahead, Hong Kong will continue to improve its virtual asset regulatory framework. The "Stablecoin Ordinance Draft" is expected to take effect this year, providing clear guidelines for the issuance and use of stablecoins. In addition, Hong Kong plans to complete the second round of public consultation on the regulation of virtual asset over-the-counter (OTC) trading within the year and launch a consultation scheme for the licensing system of virtual asset custodial service providers.

Although Hong Kong's influence in the global encryption market may not be as strong as that of some major markets, its unique positioning and strategy are noteworthy. Hong Kong is striving to build a new decentralized financial system based on its traditional financial advantages, in order to adapt to the demands of the future digital asset trading era. This "small government, large market" model provides a relatively safe and stable environment for traditional capital, while also leaving ample room for financial innovation.