In a significant step forward for the cryptocurrency sector, the Hong Kong government has endorsed the use of Bitcoin (BTC) and Ethereum (ETH) for immigration applications, enabling travelers to utilize these digital assets as proof of their financial standing.
This development follows two successful instances where mainland Chinese applicants utilized cryptocurrency holdings in their immigration applications. As per reports, Xiao Yaohe, a Hong Kong-based accountant, disclosed that a client had successfully applied for investment immigration on February 7 using Hong Kong $30M (approximately $3.85 million) worth of ETH as proof of assets.
Another applicant also received approval for their application after presenting Bitcoin holdings as their financial proof. These cases represent the first instances of cryptocurrency being accepted by the Hong Kong Investment Promotion Agency for immigration applications.
According to Hong Kong’s legislative requirements, the investment immigration program requires applicants to possess at least $3.85 million in assets. Upon approval, they are required to invest this amount within six months, typically in stocks or other regulated assets.
Successful applicants are initially granted a two-year visa, which is subject to renewal in a 2-2-3 cycle, ensuring that their investment remains intact before they acquire permanent residency.
This move by Hong Kong, though a first for its investment immigration program, emulates Singapore, which has long accepted cryptocurrency as an asset certificate for similar applications. However, applicants in Singapore are required to provide proof of the initial source of funds used to acquire their crypto holdings.
Yaohe stated that the Hong Kong Investment Promotion Agency spent a month deliberating internally before approving the first application involving cryptocurrency. At present, two more applicants are awaiting approval of their applications based on their crypto assets.
In related developments, a recent report by Gemini, in association with Glassnode, found that retail Bitcoin transactions in the Asia-Pacific region (APAC) have been growing at a faster pace than other regions. The study concluded that retail engagement in the APAC region is expanding at a significantly higher rate.
Saad Ahmed, Head of Gemini’s APAC business, highlighted that clearer regulations in key Asian markets such as Singapore and South Korea have spurred individual investors to participate more actively in the crypto market.
In conclusion, Hong Kong’s move to accept Bitcoin and Ethereum for immigration applications represents a significant milestone in the global acceptance of cryptocurrencies. It not only legitimizes the use of digital assets but also signifies the increasing recognition of cryptocurrencies as a valid form of financial asset.
