The Hong Kong government has responded to inquiries regarding the use of cryptocurrencies as proof of wealth for its immigration scheme, offering a nuanced response that leaves the door open for digital assets to play a role in attracting global talent and capital.
The response follows public statements by Clement Siu, a Hong Kong-based certified public accountant, who revealed that he had successfully handled two immigration cases where Bitcoin and Ether were accepted as proof of a client’s assets.
While cryptocurrencies are not explicitly approved for direct investment under the immigration scheme, Siu’s cases suggest they can be used as proof of a potential immigrant’s wealth, underscoring their growing recognition as a mainstream asset.
InvestHK’s ambiguous stance: no specific requirements
InvestHK, Hong Kong’s investment promotion department responsible for managing applications for the New Capital Investment Entrant Scheme (New CIES), stated that there were “no specific requirements” around asset classes when asked if cryptocurrencies were acceptable assets.
Hong Kong relaunched an investment immigration scheme in March 2024 to attract capital.
Applicants must show they control assets worth at least HK30million (3.9 million), and then invest that in some approved assets in order to obtain residency.
Siu: “they encouraged us to give it a try”
“InvestHK has never said whether crypto assets are acceptable or not, but they encouraged us to give it a try, so we just tried,” Siu, a deputy managing partner at Global Vision CPA Limited, which issues accountant reports for immigration applicants, told Reuters.
InvestHK did not comment specifically on the cases Siu highlighted and did not say how many immigration applications had been accepted using cryptocurrencies as proof of wealth.
Competing for crypto hub status: a boost for virtual assets
Hong Kong is actively vying with regional rivals like Singapore and Dubai to establish itself as the global hub for virtual assets, making its stance on cryptocurrencies particularly significant.
“Accepting virtual assets as proof of assets shows that virtual assets have the same status as traditional assets in Hong Kong, this is an important step in promoting the mainstreaming of virtual assets,” said Jupiter Zheng, a partner at HashKey Capital.
However, the acceptance of cryptocurrencies in the immigration process also raises potential concerns about the evasion of China’s strict capital controls.
While the Hong Kong investment immigration scheme is not open to mainland Chinese, they can circumvent this restriction if they obtain permanent residence in a third country, analysts say.
Siu confirmed that one of his clients who used Ether as proof of wealth was a Chinese national holding Guinea-Bissau residency, highlighting the potential for such loopholes to be exploited.
Hong Kong government data for June showed that nearly 80% of more than 250 New CIES applicants were from Guinea-Bissau or Vanuatu.
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