Hong Kong Investment Immigration New Policy: Encryption Assets Become Get on Board Ticket

Recently, the Hong Kong Investment Promotion Agency approved an investment immigration application using 30 million HKD worth of Ethereum as proof of assets. This news has attracted widespread attention in the encryption community, especially for Chinese investors holding a large amount of encryption assets, as it undoubtedly lowers the threshold for overseas immigration.

This policy belongs to the new Capital Investment Entrant Scheme (CIES) launched by the Hong Kong government in 2023. The scheme aims to attract external investors and capital, further consolidating Hong Kong's status as an international asset and wealth management center. Under the scheme, qualified investors who invest HKD 30 million in permitted assets in Hong Kong may obtain a stay visa and have the opportunity to apply for permanent resident status in Hong Kong after residing for 7 years.

The application process includes the following key steps:

1. Asset Proof: Applicants are required to hire a professional accountant in Hong Kong to provide a verification certificate of net assets of 30 million HKD, with a verification period of the 6 months prior to the application.

2. Investment Requirements: Applicants must invest no less than 30 million Hong Kong dollars in the specified asset categories within the stipulated time, of which 27 million Hong Kong dollars is to be used for financial assets, and 3 million Hong Kong dollars is to be mandatorily invested in Hong Kong-related companies or projects.

3. Visa Issuance: After completing the investment, the Hong Kong Immigration Department will issue a 2-year stay visa, which needs to be renewed thereafter.

4. Continuous capital verification: A capital verification report from a professional accountant must be provided each year to prove that the total investment amount is maintained above 30 million HKD.

It is worth noting that the participation in this cryptocurrency is primarily concentrated in the initial verification phase. Mainstream cryptocurrencies such as Bitcoin and Ethereum are recognized as proof of assets, but whether other cryptocurrencies are applicable still needs to be specifically assessed.

However, using cryptocurrency as proof of assets is not an easy task. The biggest challenge lies in proving the legitimacy of the source of funds. Applicants need to provide the original source of funds used to purchase the encryption and transaction records, which may pose difficulties for investors who have been involved in the crypto market for a long time.

Nevertheless, Hong Kong's first acceptance of encryption as proof of assets for investment immigration reflects its open attitude towards the encryption industry. This not only increases the use cases of encryption but is also expected to further enhance Hong Kong's position in the global encryption ecosystem. In the long run, this may attract more talent and capital, promoting the development of Hong Kong's Web3 industry.

In recent years, Hong Kong has actively introduced several policies to attract foreign talent, including optimizing the existing talent entry program and launching a new high-skilled talent program. These measures aim to address the issue of population loss and enhance Hong Kong's competitiveness. According to statistics, nearly 140,000 various types of talent entry program visas have been successfully approved in 2024, an increase of 4,000 from the previous year.

In the Web3 space, Hong Kong is striving to balance regulation and innovation. In 2024, Hong Kong approved the issuance of 6 virtual asset spot ETFs, significantly enhancing investor participation. Currently, 9 virtual asset trading platforms have obtained licenses, and over 30 brokerage and asset management institutions have received upgrades to their relevant business licenses.

Hong Kong is actively exploring innovations in the fields of stablecoins and central bank digital currencies (CBDC). The "Stablecoin Regulation Draft" is under review and is expected to come into effect this year. In addition, regulations for over-the-counter (OTC) trading of virtual assets and a licensing system for custodial service providers are also in preparation.

Although Hong Kong's influence in the global encryption market remains limited, it is striving to build a new system that combines traditional finance and decentralized finance. Hong Kong's goal is to prepare for the future of digital asset trading while maintaining its status as a traditional financial center.

For crypto investors considering investment immigration, Hong Kong offers a new option. Although the threshold may be higher compared to other countries, its stable financial environment and open attitude towards the encryption industry still hold certain appeal. When making decisions, investors need to weigh various factors and choose the plan that best suits them.