Hong Kong New Capital Investment Entrant Scheme (CIES)

Hong Kong has taken a significant step in integrating cryptocurrencies into its financial and immigration systems by officially recognizing Bitcoin and Ethereum as valid proof of assets for its investment immigration program. This development is part of the New Capital Investment Entrant Scheme (CIES), which aims to attract high-net-worth individuals to the region. The application process for Hong Kong’s New Capital Investment Entrant Scheme (CIES) typically takes around 6 to 12 months from start to completion, depending on the applicant’s preparedness and the complexity of their case. 

Key Details of the Policy

  1. Asset Requirements: Applicants must demonstrate ownership of at least HK$30 million (approximately $3.8 million USD) in assets, including cryptocurrencies like Bitcoin and Ethereum. These assets must be securely stored in cold wallets or on reputable exchanges such as Binance.
  2. Investment Obligation: After approval, applicants are required to invest the equivalent amount (HK$30 million) in Hong Kong within six months. Traditional investment options include stocks, bonds, and other financial instruments, but it remains uncertain whether direct crypto investments or crypto-based ETFs will qualify under this scheme.
  3. Visa and Residency: Successful applicants receive an initial two-year visa, which can be renewed up to three times before applying for permanent residency. Authorities will monitor asset holdings and investment compliance throughout this period.
  4. Recent Cases: Two applicants have successfully used cryptocurrency holdings to meet the asset threshold—one with Bitcoin in October 2024 and another with Ethereum in February 2025. Both cases involved applicants from mainland China.
  5. Source of Funds (SOF): Applicants must provide clear documentation proving the source of their cryptocurrency holdings. This includes transaction records, tax payment certificates, and other evidence to ensure compliance with anti-money laundering (AML) and regulatory standards.
  6. Storage Compliance: Cryptocurrencies used for asset verification must be stored in a secure manner—either in cold wallets or on major exchanges approved by authorities

Implications

  • Global Crypto Hub: This move aligns with Hong Kong’s broader strategy to position itself as a leading hub for digital finance in Asia. It complements its ongoing efforts to regulate crypto exchanges and stablecoins while attracting tech-savvy investors.
  • Challenges: While this policy validates cryptocurrencies as legitimate assets, applicants face challenges such as proving the source of funds (SOF), especially for early adopters who may lack comprehensive transaction records. Additionally, strict storage and compliance requirements could deter some investors.

Future Outlook

Hong Kong’s decision sets a precedent for integrating digital assets into formal financial systems, potentially influencing other regions to adopt similar measures. However, questions remain about whether crypto-based ETFs or direct investments will be accepted under the program. As more applications are reviewed, further clarity on these aspects is expected.