In a potential game-changer for the cryptocurrency industry, Hong Kong appears to be quietly acknowledging digital assets as a legitimate form of wealth for immigration purposes. While cryptocurrencies like Bitcoin and Ethereum are not officially listed as approved investment assets, recent cases suggest they can still be used as proof of an applicant’s financial standing under the city’s investment immigration program.

Cryptocurrencies Enter the Immigration Landscape

The discussion around this development emerged after Clement Siu, a Hong Kong-based certified public accountant, publicly disclosed that he had successfully handled two immigration cases where applicants used Bitcoin and Ethereum as proof of assets. Siu's revelation underscores the growing recognition of digital assets as mainstream financial instruments, despite regulatory ambiguity.

Under the newly relaunched New Capital Investment Entrant Scheme (New CIES), applicants must demonstrate ownership of at least HK$30 million ($3.9 million) in assets before investing in approved assets to qualify for residency. While InvestHK, the government department overseeing the program, has not explicitly stated that cryptocurrencies qualify, it also has not ruled them out.

“InvestHK has never said whether crypto assets are acceptable or not, but they encouraged us to give it a try, so we just tried,” said Siu, a deputy managing partner at Global Vision CPA Limited. This open-ended stance suggests a willingness to adapt to the evolving financial landscape.

Hong Kong’s Bid to Be a Crypto Hub

Hong Kong has been actively positioning itself as a global leader in virtual assets, competing with financial hubs like Singapore and Dubai. The tacit acceptance of cryptocurrencies as proof of wealth aligns with the city's broader strategy to attract crypto-related investments and talent.

“Accepting virtual assets as proof of wealth shows that virtual assets have the same status as traditional assets in Hong Kong,” noted Jupiter Zheng, a partner at HashKey Capital. “This is an important step in promoting the mainstreaming of virtual assets.”

Implications and Concerns

While this potential policy shift could bolster Hong Kong’s appeal to crypto investors, it also raises concerns about regulatory oversight and financial transparency. Notably, the New CIES is not open to mainland Chinese applicants. However, analysts point out that some individuals bypass this restriction by acquiring permanent residency in third countries before applying.

One of Siu’s clients, for example, was a Chinese national holding Guinea-Bissau residency who successfully used Ethereum to prove his wealth. Government data from June 2024 showed that nearly 80% of New CIES applicants were from Guinea-Bissau or Vanuatu, highlighting potential loopholes in capital control measures.

The Road Ahead

As more cases emerge, Hong Kong may be forced to clarify its stance on cryptocurrencies within its immigration framework. While official recognition remains elusive, the current trend signals a progressive shift in how digital assets are perceived in high-stakes financial matters.

For now, crypto investors eyeing residency in Hong Kong may find themselves in a grey area—but one that appears increasingly favorable to digital wealth holders.