Hong Kong recognizes Bitcoin as legal for multiple reasons. Hong Kong has always actively supported financial innovation, viewing cryptocurrencies and blockchain technology as an important part of fintech. Recognizing Bitcoin as legal can promote crypto finance and Web3.0 innovation, attract enterprises and talent, and foster the development of the fintech ecosystem. In the face of competition from other regions, recognizing Bitcoin as legal helps enhance Hong Kong's global competitiveness and solidify its position as an international financial center. The special administrative region government has introduced relevant policy frameworks to build a cryptocurrency ecosystem. At the same time, Hong Kong implements strict regulatory measures, such as the licensing system for virtual asset service providers, to prevent fraud and other risks, thereby protecting investor rights. From an economic development perspective, Bitcoin can spawn new financial products and services, becoming a new growth point for the economy and providing diverse investment options. Additionally, as global virtual asset regulations become more refined, this move allows Hong Kong to align with international standards, follow financial development trends, integrate into the international market, participate in cross-border financial innovation, and enhance its voice in the international virtual asset market. This is also due to the open attitude of the Hong Kong Monetary Authority, strong market demand, the Securities and Futures Commission promoting standardization, and government support for technological innovation. In summary, this initiative is beneficial to Hong Kong's local economy and the global virtual asset industry, having far-reaching implications in areas such as innovation, competition, regulation, and development.