The Hong Kong government has approved the use of BTC and Ethereum for immigration applications. Travelers can use these coins as proof of assets required by authorities.
The move comes after two successful cases where applicants from mainland China used crypto holdings in their residency applications
According to reports, Hong Kong-based accountant Xiao Yaohe revealed that on February 7, a client successfully applied for investment immigration using HK$30M worth of ETH as proof of assets.
In another case, one applicant was approved after presenting Bitcoin holdings as their financial proof. These cases mark the first instances of crypto being accepted by the Hong Kong Investment Promotion Agency for such applications.
HK is becoming a more pro-crypto economy
According to the jurisdiction’s legislature, Hong Kong’s investment immigration program requires applicants to demonstrate at least HK$30 million (approximately $3.85 million) in assets. Once approved, they must invest this amount within six months, traditionally in stocks or other regulated assets.
Successful applicants initially receive a two-year visa. Then, they have to renew their visa in a 2-2-3 cycle. This ensures that their investment remains intact before gaining permanent residency.
While Hong Kong’s move is a first for its investment immigration program, Singapore has long accepted cryptocurrency as an asset certificate for similar applications. However, applicants in Singapore are asked to prove the initial source of funds used to acquire their crypto holdings.
Yaohe noted that when the first Hong Kong application involving cryptocurrency was submitted, the Investment Promotion Agency deliberated internally for a month before granting approval.
Currently, two additional applicants are awaiting approval based on their crypto assets. To meet Hong Kong’s criteria, these assets must be stored on major exchanges or in cold wallets.
Retail crypto activity surges in APAC, surpasses US and Europe
In other developments, a February 6 report from Gemini, in collaboration with Glassnode, found that retail Bitcoin transactions in APAC have been growing faster than in other regions. They exclude exchange-traded fund (ETF) activity and large institutional flows, where the US leads.
“The highlight of the year for the digital asset ecosystem has been the movement of spot bitcoin ETFs to US capital markets […] however, when we exclude the activity of exchanges and ETF flows (institutional presence) […] we are seeing large retail and individual growth outside of the US,” the report stated.
The study concluded that retail engagement in APAC is expanding at a significantly higher rate after analyzing transaction timestamps and linking BTC activity to working hours across different regions.
As revealed in the research, since Bitcoin’s cycle low in December 2022, the APAC region has experienced a 6.4% year-over-year increase in Bitcoin supply. In contrast, the US saw a 5.7% decline over the same period, while Europe recorded a meager drop of 0.7%.
Saad Ahmed, head of Gemini’s APAC business, noted that clearer regulations in key Asian markets, such as Singapore and South Korea, have encouraged individual investors to participate more actively in crypto markets.
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