Hong Kong Slowly Acknowledging Crypto as Wealth Proof

Hong Kong's government has officially acknowledged cryptocurrencies as potential proof of wealth under its New Capital Investment Entrant Scheme (New CIES), marking a significant step in the mainstream acceptance of digital assets.

According to Reuters, local certified public accountant Clement Siu confirmed handling two cases where Bitcoin and Ethereum were successfully used to verify clients' financial status. While cryptocurrencies are not directly approved for investment under New CIES, these instances suggest growing institutional recognition of virtual assets.

Flexible Asset Rules Allow Crypto to Gain Ground

InvestHK, the government agency managing New CIES applications, clarified that there are "no specific requirements" regarding acceptable asset classes, leaving room for crypto holdings to be considered in financial evaluations.

The New CIES, relaunched in March 2024, requires applicants to demonstrate control over assets worth at least HK$30 million ($3.9 million). These assets must then be invested in approved financial instruments to secure Hong Kong residency.

While InvestHK did not comment directly on Siu’s cases, its open stance on asset classification positions Hong Kong as a competitive player in the global crypto-friendly immigration market, rivalling Singapore and Dubai.

Crypto’s Growing Legitimacy in Hong Kong’s Financial Landscape

Jupiter Zheng, partner at HashKey Capital, noted that accepting virtual assets as proof of wealth equates them with traditional financial instruments, reinforcing Hong Kong’s progressive stance on digital finance and blockchain adoption.

However, the scheme currently excludes applicants from mainland China unless they obtain permanent residency in a third country. This restriction raises potential concerns about capital control evasion, as seen in a case where a Chinese national with Guinea-Bissau residency used Ethereum as proof of wealth.

Surge in New CIES Applications from Crypto Holders

Hong Kong government data from June revealed that nearly 80% of the 250+ New CIES applicants hailed from Guinea-Bissau and Vanuatu—a trend that underscores how crypto is reshaping global wealth mobility and residency-by-investment programs.

As virtual assets gain legitimacy in financial systems, their inclusion in wealth verification signals a broader shift in global immigration policies and digital finance regulations.

(Sources: investing.com, reuters.com, ChatGPT)