As cryptoasset ETFs surge and more companies adopt crypto payments, virtual assets (VAs) are becoming an integral part of global finance and wealth management, especially among younger generations.
For Asia’s ultra high net worth (UHNW) individuals, the question is no longer whether to own crypto or not but what is the best jurisdiction to safeguard and grow it. With its progressive residency pathways, robust legal recognition, and forward-looking VA regulatory environment, Hong Kong has emerged as an increasingly attractive hub for generational crypto wealth.
Gateway to residency: cryptocurrencies as qualifying assets
Hong Kong’s recently revamped Capital Investment Entrant Scheme (CIES or the Scheme) marks a significant policy advancement, with InvestHK, the city’s official investment promotion agency, confirming the acceptance of Bitcoin and Ethereum as part of applicants’ proof of wealth assessments.
While cryptocurrencies can now be used to prove individuals' wealth under the Scheme, they must be converted to certain permissible investment assets to fulfil the HK$10 million investment requirement as set out in the Scheme, which include the following:
- Publicly listed securities on the Hong Kong Stock Exchange traded in Hong Kong dollars.
- Fixed or floating rate instruments and convertible bonds that are issued or fully guaranteed by the Hong Kong government and other corporations, agencies, or bodies wholly or partly owned by the Hong Kong government.
- Certificates of deposits in Hong Kong dollars issued by authorised institutions as defined in the Banking Ordinance, with a remaining term to maturity of not less than 12 months at the time of purchase.
UHNW individuals can now leverage their VAs alongside traditional assets when seeking residency in the city, a progressive stance that sets Hong Kong apart. This Scheme has proven to be particularly attractive to Chinese mainland applicants whose VA holdings may not be recognised in other jurisdictions.
Legal certainty for generational wealth
The Hong Kong High Court’s landmark decision in Re Gatecoin in 2023 (later affirmed in 2025) resolved critical questions about the legal status of cryptocurrencies, ruling that cryptocurrencies constitute recognised property that are capable of being held on trust. This precedent has transformed succession planning possibilities for VA in Hong Kong.
UHNW families can now structure their VA holdings with the same confidence as they would with traditional wealth. Hong Kong’s sophisticated trust framework, combined with its absence of capital gains and inheritance taxes, creates an ideal environment for multigenerational VA wealth planning and succession.
While Hong Kong’s legal recognition of VAs enables robust succession planning, certain implementation practicalities demand meticulous preparation. Unlike traditional assets, VA holdings, specifically crypto holdings, require executors and trustees to have access to highly sensitive information, like private keys or multisignature protocols, that may be stored in peculiar locations.
With the proliferation of VAs alongside their increased liquidity, integrating VA-specific safeguards into estate planning has become a critical pillar in wealth succession so that executors and trustees have better visibility and accessibility to track and exercise control over the VAs.
Institutional-grade safeguards
The Hong Kong Securities and Futures Commission rolled out the ASPIRe Roadmap (the Roadmap) in February 2025 to strengthen investor protection in VAs and facilitate the growth of Hong Kong’s VA ecosystem. The Roadmap has five key pillars:
- Access.
- Safeguards.
- Products.
- Infrastructure.
- Relationships.
It aims to provide a robust framework that supports growth in the VA space while managing the associated risks.
While the Roadmap primarily targets licensed institutions, its focus on institutional-level custody solutions and enhanced disclosure requirements benefits all market participants. The Roadmap addresses crypto holders’ primary concerns, such as security against counterparty risk and transparency in asset management.
By bridging the gap between traditional finance and VA investment, as well as harmonising local regulations with global standards, Hong Kong can leverage its legacy and know-how in traditional finance and provide UHNW individuals with confidence in managing VAs that are comparable to traditional portfolios.
Positioning Hong Kong as the VA wealth hub
As the gateway between China and the world, Hong Kong continues to develop a comprehensive ecosystem for preserving and growing VA wealth and cement its status as a premier international financial centre and the natural hub for the younger VA-affluent generations.
