In order to further attract investment and stimulate economic growth, the Hong Kong government is planning to list virtual assets such as Bitcoin as investment immigration assets. This news has attracted widespread attention and sparked discussions about the potential of Bitcoin in investment immigration.
In fact, the Hong Kong government has implemented the "Capital Investor Entrance Scheme" since 2003. Any capital investor who invests no less than HK$10 million in Hong Kong will obtain Hong Kong residency and does not need to participate in any business in Hong Kong. However, the scheme was eventually suspended in 2015.
However, after 8 years, in order to attract talents and funds to Hong Kong again, the Hong Kong government intends to restart the "Capital Investor Entrance Scheme". As long as you invest more than 30 million Hong Kong dollars in Hong Kong and live there for 7 consecutive years, you can apply for a Hong Kong permanent resident identity card. It is understood that the Hong Kong government issued the "Policy Declaration on the Development of Family Office Business in Hong Kong" in March this year, which will attract family offices with 8 measures, including the announcement of the details of the new version of the "Capital Investor Entrance Scheme" before the end of this year, and the entry threshold will be raised to 30 million Hong Kong dollars.
Recently, news broke that current Legislative Council member David Chiu hopes that Hong Kong authorities can clarify the scope of assets and classify Bitcoin traded on licensed virtual asset exchanges as a financial product. This would mark a major shift in traditional asset classes and highlight the changing nature of investment in the digital age.
Wang Xiaoyan, Hong Kong tax partner of accounting firm PricewaterhouseCoopers (PwC Hong Kong), pointed out that family offices have a wider investment scope. In addition to traditional assets such as stocks, derivatives, and bonds, they also like to invest in other emerging and alternative investment products, such as art, wine, virtual assets, etc. However, the current preferential system does not include these investment categories. Classifying virtual assets as financial products will enable family offices and investors to enjoy tax benefits.
PricewaterhouseCoopers also revealed that clients have been inquiring about when the Hong Kong investment immigration program will be restarted. It believes that there is a certain demand and hopes that it can be coordinated with the family office tax incentive system. For example, it may consider providing immigration packages for qualified family offices, allowing members and their dependents or immediate family members to obtain visas to attract family offices to Hong Kong.
As Bitcoin and other cryptocurrencies gain global popularity, including them in the investment immigration program may attract more investors to choose Hong Kong as their offshore investment destination. This move is expected to inject new vitality into Hong Kong's economy and provide investors with more choices and opportunities.
However, the new policy has sparked some controversy. Some people think that the 30 million yuan entry fee is too high, and that most regions' investment immigration programs are only locked for 5 years, but Hong Kong requires 7 years of residence to obtain permanent residency.
If calculated at the current Hong Kong dollar exchange rate, 30 million Hong Kong dollars is approximately equal to 3.84 million US dollars, which is approximately equal to the value of 103.8 bitcoins. For investors, whether this threshold is high or low is a matter of opinion. Even if virtual assets are really included in the regulations, how to buy them is another issue worth exploring.
On the other hand, there are concerns about whether the new system has enough incentives to attract investment immigrants. Singapore has more than 1,000 family offices, and Hong Kong's current measures to attract family offices are comparable to Singapore. However, whether wealthy people are willing to move their assets back is also a matter of political factors or the overall situation of the world. It is not possible to move back by simply changing a few regulations.
Zeng Peilin, chairman of the Zeng Group, which runs a family office, analyzed that the Hong Kong governmentâs policy is moving in the right direction, but there is still room for improvement. If the preferential policies are similar to those in Singapore and Dubai, many people will consider other regions, so Hong Kong must introduce more attractive measures.
Nevertheless, the move to include Bitcoin in financial products and immigrant assets has important symbolic significance. It demonstrates the Hong Kong government's recognition of Bitcoin and other cryptocurrencies, as well as its open attitude toward emerging financial technologies. This will help further consolidate Hong Kong's position as an international financial center and attract more financial technology innovation and investment.
Summarize
In conclusion, whether Hong Kong's inclusion of Bitcoin in financial products and immigration assets can achieve the desired goal remains to be verified, but if implemented, the proposal may mark an important milestone in the inclusion of digital assets in mainstream investment strategies, reflecting Hong Kong's willingness to adapt and innovate in an increasingly digital global economy. The Hong Kong government's proposal to include Bitcoin in financial products and immigration assets is indeed a milestone. This move may also provide a reference for other regions to inspire their development and innovation in the field of digital assets, which is of great significance to the development of the entire virtual asset field.
