Hong Kong has officially recognized Bitcoin (BTC) and Ethereum (ETH) as acceptable forms of asset proof for its Capital Investment Entrant Scheme (CIES), marking a pivotal advancement in its financial innovation strategy. Under the updated policy, qualified applicants can now use digital assets to meet the HK$30 million (approximately USD 3.8 million) net asset requirement—opening new pathways for global crypto holders seeking residency.
This shift represents a major departure from traditional investment migration frameworks, which have historically relied on stocks, bonds, and real estate. By embracing blockchain-based assets, Hong Kong reinforces its ambition to become a leading hub for Web3, digital finance, and innovative investment solutions.
Expanding the Scope of Eligible Investment Assets
The revised CIES now includes Bitcoin and Ethereum among its list of approved investments. Applicants must demonstrate ownership of qualifying digital assets valued at no less than HK$30 million during the six months preceding their visa submission. To ensure legitimacy and compliance, the Hong Kong Investment Promotion Agency requires verifiable proof of holdings—such as statements from regulated crypto exchanges or audited cold wallet records.
This structured verification process helps mitigate risks associated with volatility and traceability while aligning with international anti-money laundering (AML) standards. The inclusion of on-chain assets introduces a modern, transparent mechanism for wealth validation—complementing traditional financial documentation.
Since the policy update in October, the agency has processed its first wave of crypto-backed applications, with an average review period of about 30 days. Notably, two applications relying primarily on cryptocurrency holdings have already been approved—setting important precedents and signaling strong regulatory confidence in digital asset verification.
Strategic Benefits: Attracting Global Talent and Capital
The decision to accept crypto assets is not merely symbolic—it carries tangible economic and strategic advantages. According to Ding Zhaofei, Chief Analyst at HashKey Group, the move delivers multiple long-term benefits:
- Broadens the investor pool: Millions of high-net-worth individuals in the crypto space now qualify for Hong Kong’s investment visa, significantly expanding outreach.
- Boosts market liquidity: Inflows of digital capital enhance trading volumes and deepen financial markets.
- Diversifies asset classes: Integrating blockchain assets enriches Hong Kong’s financial ecosystem, attracting fintech innovators and institutional players.
- Strengthens Web3 leadership: By legitimizing crypto wealth, Hong Kong solidifies its position as Asia’s premier Web3 innovation center.
Moreover, the establishment of a dual-track verification system—“on-chain” and “off-chain”—allows regulators to cross-reference digital footprints with real-world identities, fostering trust without compromising technological openness.
Addressing Implementation Challenges
While the policy is forward-thinking, it is not without hurdles. Key challenges include:
1. Identity Verification Complexity
Cryptocurrencies operate on decentralized networks, often obscuring the link between wallet addresses and real-world identities. Regulators must rely on third-party attestations from compliant exchanges or custodians to verify ownership.
2. Provenance of Early Holdings
Many long-term crypto investors acquired assets before the rise of regulated platforms. Without bank statements or formal transaction histories, proving lawful origin becomes more complex—especially for early adopters who mined or traded informally.
3. Data Gaps from Defunct Exchanges
Some investors hold assets traced through now-defunct or non-compliant exchanges, where audit trails are incomplete or missing. This complicates source-of-funds assessments and increases due diligence burdens.
4. Price Volatility Risks
Given the inherent volatility of digital assets, maintaining a stable HK$30 million threshold over six months can be challenging. A sharp market dip could jeopardize eligibility unless hedging strategies or multi-asset portfolios are employed.
To address these issues, Hong Kong authorities are working closely with licensed virtual asset service providers (VASPs) to standardize reporting formats and enhance forensic auditing capabilities.
A Model for Global Financial Innovation
Hong Kong’s integration of Bitcoin and Ethereum into its immigration framework sets a precedent that could influence other financial centers. As more countries explore central bank digital currencies (CBDCs) and tokenized assets, this policy demonstrates how governments can adapt to evolving forms of wealth.
Unlike speculative regulatory gestures, this change reflects a deliberate effort to align immigration policy with technological reality. It acknowledges that digital asset holders are not just tech enthusiasts—they are entrepreneurs, investors, and innovators whose capital can drive economic growth.
Early data indicates rising interest among ultra-high-net-worth individuals considering Hong Kong as a base for both personal residency and business expansion. With increasing adoption of blockchain analytics tools, regulators are better equipped than ever to assess crypto portfolios with precision and fairness.
Frequently Asked Questions
Q: Can any cryptocurrency be used for the investment visa application?
A: No. Only Bitcoin (BTC) and Ethereum (ETH) are currently accepted under the revised Capital Investment Entrant Scheme.
Q: How do I prove ownership of my crypto assets?
A: You must provide verifiable documentation from a regulated exchange or custodian showing consistent holdings over the past six months. Cold wallet proofs may require additional auditing.
Q: Is there a minimum holding period for the crypto assets?
A: Yes. Applicants must maintain qualifying assets for at least six months prior to submission to demonstrate stability and commitment.
Q: What happens if the value of my crypto drops below HK$30 million during the review?
A: Fluctuations are expected, but sustained drops below the threshold may affect eligibility. Diversifying across BTC and ETH or using stable valuation windows can help manage risk.
Q: Does approval guarantee permanent residency?
A: Initial approval grants residency status, which can be renewed. After seven years of continuous residence, applicants may qualify for permanent residency and the right of abode.
Q: Are there tax implications for using crypto as asset proof?
A: Hong Kong does not impose capital gains tax on virtual assets, making it an attractive jurisdiction for crypto holders. However, professional tax advice is recommended for cross-border situations.
Conclusion
By recognizing Bitcoin and Ethereum as valid investment instruments for immigration purposes, Hong Kong sends a clear message: it is open for innovation. This policy bridges the gap between traditional finance and the digital economy, offering a pragmatic solution for modern wealth holders.
As global mobility increasingly intersects with digital asset ownership, Hong Kong’s proactive stance positions it at the forefront of financial inclusion, technological adoption, and strategic talent acquisition. For crypto-native investors, this isn’t just a visa pathway—it’s an invitation to shape the future of finance.
With continued advancements in blockchain compliance and identity verification, this initiative could serve as a blueprint for other economies aiming to stay competitive in a rapidly digitizing world.