The Hong Kong government recently addressed the use of cryptocurrencies as proof of wealth for an immigration scheme, following revelations by a local accountant. Two cases were highlighted where bitcoin and ether were accepted as proof of assets, indicating a growing acknowledgment of digital assets in mainstream finance.
Although cryptocurrencies are not officially sanctioned for direct investment under the scheme, the cases handled by accountant Clement Siu underscore their potential as evidence of an immigrant's financial standing. InvestHK, responsible for the New Capital Investment Entrant Scheme (New CIES) applications, stated there are no specific restrictions on asset classes, indirectly acknowledging cryptocurrencies as admissible assets.
The initiative, revamped in March 2024 to attract investments, requires applicants to demonstrate control of assets valued at least HK$30 million ($3.9 million) and subsequently invest in approved assets for residency eligibility. Siu, a deputy managing partner at Global Vision CPA Limited, mentioned that while InvestHK did not expressly endorse cryptocurrencies, they were receptive to exploring their use as proof of wealth.
Regarding concerns about the scheme attracting Chinese nationals through third-country residency, Siu disclosed a client, a Chinese national with residency in Guinea-Bissau, who successfully utilized ether as proof of assets. Hong Kong government data from June indicated that a significant percentage of New CIES applicants hailed from Guinea-Bissau or Vanuatu.
Efforts to establish Hong Kong as a global hub for virtual assets are evident in the government's recognition of cryptocurrencies as on par with traditional assets, signaling a significant stride towards mainstream adoption.