According to PANews, while some employees overseas receive salaries in Bitcoin, this practice is not common in Hong Kong. The region's Employment Ordinance mandates that wages be paid in legal tender, and since cryptocurrencies are not recognized as legal currency, paying salaries in Bitcoin could potentially violate the law. Some tech companies have used Bitcoin as a bonus or reward, which poses fewer legal issues.
From a mortgage perspective, Bitcoin is not considered a stable income like bonuses. Banks typically calculate a borrower's income by averaging bonuses received over two years to determine the debt-to-income ratio (DTI), which can allow for a mortgage of up to 90%. However, since Bitcoin is not legal tender, even if employees consistently receive it as a bonus or declare it for tax purposes, banks will not accept it. Borrowers must rely on salaries, bonuses, and commissions paid in legal currency to calculate DTI.
Currently, Hong Kong banks do not recognize Bitcoin. They only accept cash, stocks, foreign currency, Hong Kong properties, funds, and bonds. Some banks accept insurance policies without premiums as assets, but there are no successful cases involving Bitcoin due to its non-recognition by banks. The only feasible method is to convert cryptocurrency into cash and use it as a down payment or apply for a mortgage based on asset levels. Under the latest regulations, this could allow for a loan of up to 70%.
It is important to note that if cryptocurrency is converted to cash for an asset mortgage application, some banks require the funds to be held in an account for over three months and demand bank statements. If these statements show that the funds originated from cryptocurrency sales, banks may scrutinize the source due to potential money laundering risks. This could lead to mortgage rejections or even account closures to mitigate risks.
