(文章只备英文版本)
The Hong Kong SAR Government has been actively developing a comprehensive regulatory regime for virtual assets to achieve a dynamic balance between meeting the rising demand for virtual asset investment products and safeguarding the interests of investors. Recently, it was reported that cryptocurrency had been accepted as proof of an applicant’s net assets/equity value in assessing the applicant’s eligibility under the New Capital Investment Entrant Scheme (“New CIES”).
Under the New CIES, launched on 1 March 2024 together with its enhancement measures announced on 7 January 20251, applicants are required, among other things, to: (1) undergo a net-worth assessment to prove ownership of net assets or equity of not less than HK$30 million for a minimum duration of six months prior to the application (“Net Asset Value” and this CIES requirement, the “Net Asset Value Requirement”) ; and (2) fulfil and maintain a minimum investment of HK$30 million in “permissible investment assets” (“Investment Requirement”).
InvestHK is responsible for assessing whether the applications fulfill the financial requirements, and the Immigration Department is responsible for assessing the applications for visa/entry permit and extension of stay.
Firstly, it should be noted that, to fulfil the Net Asset Value Requirement, applicants must provide a valuation report signed by a certified public accountant to verify the value of such assets. Therefore, when a Hong Kong-based certified public accountant shared that an application where Net Asset Value including Bitcoins and Ethers was accepted as proof of Net Asset Value was accepted by InvestHK on social media which was then reported in various news articles, it is presumably on the basis that he signed the valuation report that was then provided to InvestHK for assessment. In response, InvestHK reportedly stated there were "no specific requirements" for purposes of assessing Net Asset Value. Given that the scheme rules of the New CIES do not specify the type of assets to be used for assessment of the Net Asset Value, this potentially opens the door for applicants to include virtual assets as proof of their financial standing but this is on the basis that they are able to find a certified public accountant willing to sign off on a valuation report as to the value of those virtual assets. Given the speculative nature and volatility of such assets, not all certified public accountants may be willing to do so.
Secondly, even if virtual assets and cryptocurrencies can be included in the Net Asset Value, they do not qualify as “permissible investment assets” under the Investment Requirement of the New CIES. Once applicants have passed the Net Asset Value Requirement and secured approval, they must invest the required HK$30 million in the “permissible investment assets”, which includes real estates and government-approved financial assets such as equities, debt securities, as well as ownership interest in limited partnership funds, among others but not virtual assets.
Based on statistics published in early June 2024, since the launch of the New CIES there have been 245 applications received by InvestHK, 100 of these have been approved. The Immigration Department has received 88 applications and granted 42 approvals in principle.