Hong Kong’s Stance on Crypto Transfer of Wealth Raises New Possibilities

Hong Kong, February 17, 2025 – The Hong Kong government’s recent response to inquiries about using cryptocurrencies as proof of wealth for immigration purposes has sparked discussions in financial and crypto circles. The revelation comes after a local accountant disclosed that Bitcoin and Ethereum had been successfully utilized in at least two immigration cases, suggesting a growing acceptance of digital assets in mainstream financial dealings.

Crypto Transfer of Wealth: A Recognized Asset Class?

Clement Siu, a Hong KONG-based certified public accountant recently announced that his business dealt with two instances where potential applicants used Bitcoin and Ethereum to confirm their financial health. Though cryptocurrencies aren’t classified as an approved asset to be used to invest directly in Hong Kong’s immigration program, these instances suggest that holdings of crypto can be considered to be a valid indicator of the wealth of the individual.

In response to questions on the subject, InvestHK, the government body that manages the New Capital Investment Entrant Scheme (New CIES) has stated the following “no specific requirements” regarding the types of assets that could be used to prove the wealth. The statement is open to speculation and indicates cryptocurrency assets despite not officially approved, cannot be completely disregarded.

Hong Kong’s Revised Investment Immigration Program and Crypto Transfer of Wealth

Hong Kong revamped its investment immigration system in March 2024. The goal was to attract wealthy people to boost economic growth. The New CIES requires applicants to show that they have at least 30 million HK$ (approximately $3.9 million) in assets prior to investing the amount in financial instruments that qualify them for residency.

While they are not part of standard investment strategies, their use as proof of wealth shows the increasing credibility of digital assets in the financial evaluation process.

Siu said, “InvestHK never explicitly stated whether crypto assets were acceptable, but they encouraged us to attempt using them in applications–so we did.”

InvestHK doesn’t reveal how the majority of cryptocurrency applications are approved or declined, which has left many people interested in the government’s stance in the coming months.

A Step Towards Mainstreaming Crypto Transfer of Wealth in Hong Kong

Hong Kong is striving to make itself a world pioneer in the field of regulation and acceptance, while competing with the world’s most important financial centres like Singapore as well as Dubai. The acceptance of cryptocurrencies as evidence of wealth can boost its standing as a cryptocurrency-friendly country and draw high-net-worth people with substantial digital assets.

Jupiter Zheng, a partner of HashKey Capital, noted, “Recognizing virtual assets as proof of wealth signifies their growing equivalence to traditional financial assets. This is a crucial step towards integrating digital assets into mainstream financial frameworks.”

Hong Kong’s ever-changing regulatory framework is favorable for digital assets in the last few time. The authorities have enacted clearer rules regarding cryptocurrency exchanges, and have begun initiatives to set up Hong Kong as an Web3 and blockchain-related innovation center.

Potential Implications and Challenges of Crypto Transfer of Wealth

Although the acceptance implicitly of crypto assets to be used for immigration purposes is an evolution however, it raises the issue of regulatory compliance and oversight. It could create avenues to financial inclusion, however it could also pose risks due to capital movement.

The biggest concern could be the fact that mainland Chinese applicants from mainland China. Some Chinese residents have found other ways to take part. Siu disclosed that one of his customers, a Chinese citizen, was able to use Ether (ETH) as a proof of their wealth when they obtained permanent residence in Guinea Bissau.

Hong Kong government data from June 2024 revealed that almost 80 percent of the more than 250 applicants in the New CIES came from Guinea-Bissau and Vanuatu which suggests a growing tendency of people leveraging their residences in other countries to gain access to the scheme.

China has strict capital control as well as any loophole that allows Chinese investors to transfer money offshore through crypto holdings is likely to draw more attention from Beijing. In the event that more incidents arise that show Chinese citizens circumvent the restrictions by with cryptocurrencies, this could cause regulatory changes or policy changes.

The Future of Crypto Transfer of Wealth in Hong Kong’s Financial System

Utilizing cryptocurrency to prove wealth in immigrants is only one part of Hong Kong’s overall strategy of integrating digital assets in its financial system. Hong Kong has implemented a number of rules to govern digital asset trading. These measures allow consumers to join cryptocurrency markets, while ensuring the anti-money laundering regulations.

If this trend continues then it’s possible cryptocurrency could be more officially accepted as an asset class in a variety of financial services such as investment residency programs. One of the most important questions is the question of whether Hong Kong authorities will eventually modify or modify the New CIES criteria to explicitly define digital assets or not.

Meanwhile cryptocurrency enthusiasts and investors are keeping an eye on the situation for developments Hong Kong balances its ambition to become a world-class blockchain hub and the necessity for security in the financial sector and conformity. If cryptocurrency is going to gain recognition as part of the investment immigration policy remains unclear, but recent developments suggest a changing scene that digital currencies are becoming more difficult to overlook.

For more details on the original news report, visit Reuters.