Encryption assets assist Hong Kong investment immigrants, what can 30 million HKD buy?

Recently, the investment immigration policy in Hong Kong has shown new trends, attracting the attention of cryptocurrency holders. A practicing accountant revealed that the Hong Kong Investment Promotion Department has approved an investment immigration application using Ethereum as a proof of assets of 30 million HKD. This news provides a new overseas immigration option for cryptocurrency holders, especially for large Chinese investors.

This policy originates from the new Capital Investment Entrant Scheme (CIES) launched by the Hong Kong government in 2023. The scheme aims to attract external investors and capital to consolidate Hong Kong's position as an international asset and wealth management center. According to the scheme's regulations, qualified investors can obtain a stay visa after investing HKD 30 million in Hong Kong, and after residing for 7 years, they have the opportunity to apply for Hong Kong permanent resident status.

In the application process, investors are required to hire a professional accountant in Hong Kong to issue a capital verification certificate for a net asset of 30 million HKD. It is noteworthy that the location and composition of the assets are not restricted, as long as it is proven that the applicant has corresponding market value net assets or net capital within 6 months prior to the date of submitting the net asset review application.

After approval, investors must invest no less than 30 million Hong Kong dollars in designated asset classes within 6 months. Among them, 27 million Hong Kong dollars must be invested in financial assets such as Hong Kong stocks, bonds, funds, etc. The remaining 3 million Hong Kong dollars must be forcibly invested in projects that support Hong Kong's innovation, technology, and economic development.

After completing the investment, the applicant will receive a 2-year residence visa, which can be renewed thereafter. Asset verification will need to be conducted annually to ensure that the total investment amount remains above 30 million HKD. After residing for 7 years, one can apply to become a permanent resident of Hong Kong, at which point the investment amount will no longer be restricted.

The application of cryptocurrency this time is mainly reflected in the initial verification phase, where mainstream cryptocurrencies such as Bitcoin and Ethereum are recognized as valid assets. However, when using cryptocurrencies as proof of assets, it is still necessary to provide proof of the source of funds, which can be a significant challenge for many cryptocurrency holders.

Hong Kong's move not only demonstrates its open attitude but also further establishes its inclusive position in the encryption field. This is somewhat attractive to the Chinese encryption community and also helps enhance Hong Kong's status in the Web3 industry.

In recent years, Hong Kong has introduced a series of measures to attract foreign talent, including optimizing the existing immigration plans and launching new high-skilled talent programs. These initiatives aim to address the ongoing decline in Hong Kong's population. Data shows that from July 2020 to June 2023, the net outflow of people from Hong Kong reached 530,000, accounting for about 7% of the resident population.

Currently, these talent introduction programs have shown positive results. In 2024, various talent immigration program visas were successfully approved for nearly 140,000 cases, an increase of 4,000 cases compared to the previous year. Since the launch of the new capital investor immigration program, more than 750 applications have been received, with a total expected investment exceeding HKD 22 billion.

Against the backdrop of economic challenges, Hong Kong's emphasis on the Web3 sector has not diminished but rather increased. In 2024, Hong Kong approved the issuance of 6 virtual asset spot ETFs, greatly enhancing investment convenience. Currently, three Bitcoin spot ETFs hold a total of 4,330 Bitcoins, with a total net asset value of $425 million; the Ethereum spot ETF holds 2,083 Ethers, with a net asset value of $56 million.

In terms of exchanges, Hong Kong has 9 approved virtual asset trading platforms, over 31 brokerages have upgraded to Virtual Asset License No. 1, and more than 36 asset management firms have upgraded to Virtual Asset License No. 9. In the payment sector, the Hong Kong Monetary Authority is exploring the combination of RWA and CBDC, and continuously improving relevant regulatory regulations.

Nonetheless, Hong Kong's influence in the global encryption market remains limited. Compared to the over $111.78 billion in net assets of Bitcoin ETFs in the United States, Hong Kong's scale is relatively small. Some industry practitioners believe that the investment threshold of 30 million HKD is relatively high, and the cost-effectiveness is not as good as the immigration policies in other regions.

However, Hong Kong's strategy is not to compete for encryption market share, but to build a new decentralized financial system on the foundation of traditional finance. By regulating virtual asset trading platforms and focusing on stablecoins, RWA, and other areas, Hong Kong is striving to balance its status as a traditional financial center with the demands of the future digital asset trading era. For traditional capital, the safe and stable environment provided by Hong Kong still holds unique appeal.