Hong Kong Mulls Accepting Bitcoin To Buy Residency

Hong Kong is considering expanding its investment immigration options to include Bitcoin purchases on licensed local exchanges, according to Hong Kong lawmaker Chiu Ta-kan. The proposal comes as the city revives its Capital Investment Entrant Scheme after an eight-year suspension.

The immigration program, which grants residency rights for major capital investments, will now have a threshold of around U.S. $3.84 million, up from $1.3 million previously. Real estate investments will remain prohibited, but other assets like stocks, bonds, and potentially Bitcoin may qualify.

Lawmaker Chiu Ta-kan stated that buying Bitcoin on sanctioned Hong Kong platforms should be permissible under the broadened policy. This would effectively recognize virtual currencies as financial assets for the scheme. However, the scope of qualifying investments is still being finalized by the authorities.

Hong Kong resumed the immigration program in March to attract more foreign capital and high-net-worth families. Permanent residency can be obtained after seven years under the initiative.

Hong Kong Seeks To Boost Bitcoin Adoption As A Crypto Hub

Hong Kong’s decision to integrate Bitcoin into their investment immigration program is a demonstration of the region’s aim to rival neighboring hubs like Singapore and Dubai who’ve embraced forward looking crypto regulations. Most regulators around the world are still cautious about the risks and volatility associated with cryptocurrency market, this will make Hong Kong among the first major financial centres to offer these products.

SFC was regulating crypto exchanges and funds in Hong Kong since 2018. However, it was only derivatives crypto products, and not spot ones. On her part, the SFC’s executive director Leung Ka- shing stated that the regulator could possibly allow spot crypto ETFs into the Hong Kong market if they conform with the SFC’s strict rules on investor protection and market integrity.

Nevertheless, Hong Kong also encounters problems and risks like the political uproar, the JEPX controversy, and Chinese authorities’ regulation. This leaves us wondering if Hong will accept Bitcoins for buying resident permits thus creating an opportunity for more investors and entrepreneurs into the city.

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The author’s views are for reference only and shall not constitute investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing

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