Hong Kong Is Back in the Game. Hong Kong has made a bold return as a top-tier global cryptocurrency hub – with clear regulations, government backing, access to capital, and a deep talent pool, it’s quickly overtaking Singapore and Dubai in the race to be a global cryptocurrency hub.
Why Hong Kong Now?
- Retail Trading Approved: Since June 2023, licensed virtual asset (VA) exchanges in Hong Kong can serve retail investors legally (meaning any person other than a professional investor).
- Government Support: Officials are pushing banks to work with virtual asset companies and back Web3 innovation.
- Regulatory Development: On 19 February 2023 the Securities and Futures Commission (SFC) released the “A-S-P-I-Re” regulatory roadmap for Hong Kong’s VA market.
- Global Recognition: Hong Kong was recently ranked the world’s second most cryptocurrency-friendly city in the newly released Crypto Friendly Cities Index 2025 by migration platform Multipolitan., ahead of both Singapore and Dubai.
Clarity Over Confusion VA markets, as with traditional financial markets, thrive on legal certainty. Hong Kong delivers:
- A developed, but ever adapting, licensing regime for VA platforms.
- Clear AML and investor protection rules.
Hong Kong combines mature regulation with room to grow.
Legal Protection for Crypto Assets In 2023, Hong Kong courts officially recognized cryptocurrency as “property,” bringing it in line with other common law jurisdictions. This means:
- Stronger legal protections – including creating security interests over cryptocurrency.
- Cryptocurrency is capable of being the subject matter of a trust, allowing for the division of legal and equitable interests.
Government-Driven Growth Hong Kong is investing in crypto infrastructure:
- Stablecoin Sandbox: Regulators help companies intending to issue stablecoins conduct testing with the Hong Kong Monetary Authority (HKMA) under guidance.
- Tokenized Bonds: The city issued tokenized green bonds valuing approximately HKD800 million in 2023. t.
- Cryptocurrency ETFs: Hong Kong leads Asia with regulated spot Bitcoin and Ether ETFs.
Tax Incentives and Funding Access
- Low tax environment with upcoming plans for exemptions for cryptocurrency focused hedge funds, private equity, and family offices.
- Deep capital markets and proximity to Mainland China and the Asia Pacific gives startups better access to funding.
Talent and Infrastructure
- 1,100+ fintech companies and growing Web3 ecosystem.
- Government programs and sandboxes help startups test and scale.
- Major banks opening up to crypto clients.
Choose the Right Partner At Titus, we help:
- Cryptocurrency and VA companies secure licenses.
- Investors protect and structure digital wealth.
- Startups set up with full regulatory compliance.
Hong Kong is open for VA business. Titus can help you seize the opportunity.
Let’s Talk Visit www.titus.com.hk to learn how our crypto legal team can support your move to Hong Kong.