Hong Kong approves Bitcoin as proof of asset for investment immigration

Hong Kong has taken a significant step in embracing digital assets by allowing Bitcoin and Ethereum to be used as proof of assets for its investment immigration program. This means eligible applicants can now meet the program's required net worth of HK$30 million (approximately US$3.8 million) using these cryptocurrencies. Previously, applicants primarily relied on traditional assets like stocks and bonds. This policy from Invest Hong Kong marks a pivotal moment, setting a precedent for other jurisdictions globally.

HashKey Group's chief analyst, Jeffrey Ding, highlighted the policy's multi-faceted significance: it opens Hong Kong's investment immigration program to a vast global pool of cryptocurrency holders, significantly expanding the target audience; inflows of crypto assets will boost liquidity in Hong Kong's capital markets, diversifying investment entities and asset classes, and creating a "on-chain-off-chain" asset verification dual-track mechanism, enhancing market vitality and international competitiveness; and finally, it's a major boon for the Web3 industry, attracting global talent and businesses, solidifying Hong Kong's position as a Web3 hub.

However, implementation faces challenges. The anonymity and decentralized nature of cryptocurrencies complicate matching wallet addresses with real identities. Early investors may have diverse asset acquisition methods, lacking traditional bank statements. Data loss or compliance issues from some exchanges also increase the complexity of source-of-funds checks. The volatile nature of cryptocurrency prices poses a risk to application stability.

Specifically, the program requires applicants to demonstrate ownership of designated investments worth at least HK$30 million within six months of submitting their visa application. Bitcoin (BTC) and Ethereum (ETH) are now included as acceptable assets. To ensure authenticity and security, applicants must provide proof from regulated cryptocurrency exchanges or cold wallets.

Invest Hong Kong processed its first applications using cryptocurrencies as proof of assets in October, with each application taking approximately one month to process. Two cases have already been successfully approved, encouraging further applications. Reports indicate a growing number of applicants are including Bitcoin and Ethereum in their asset documentation.

This policy not only demonstrates Hong Kong's acceptance of emerging technologies and digital assets but also provides a new case study for cryptocurrency's application within the international financial system, attracting global cryptocurrency holders to Hong Kong's investment immigration program.