Hong Kong’s evolving cryptocurrency regulations are attracting international private banking managers, positioning the city as East Asia’s fastest-growing crypto market.
A new generation of cryptocurrency millionaires, supported by the Hong Kong Special Administrative Region’s progressive regulatory approach, is driving foreign banking institutions to expand their services in the global financial hub.
Brian Ah-Chuen, managing director of Mauritius-based ABC Banking Corp, sees immense potential in Hong Kong’s booming crypto ecosystem. His firm is set to extend private banking services to high-net-worth individuals with assets exceeding $1 million by transforming its Hong Kong representative office into a wealth management hub.
“The potential inflow of new wealth has been a boon to the asset management sector, which has seen astonishing growth in recent years,” Ah-Chuen said.
A report by KPMG and The Private Wealth Management Association indicated a major turning point in 2023, with assets under management in Hong Kong reaching HK$9,022 billion ($1.161 trillion), nearly tripling from the previous year.
Hong Kong’s Capital Investment Entrant Scheme (CIES) has played a crucial role in this expansion. The updated policy now recognises Bitcoin and Ether as valid proof of the HK$30-million net worth requirement for investment visas, further solidifying the city’s reputation as a crypto-friendly financial centre.
While this regulatory shift has encouraged crypto millionaires to relocate, it has also posed challenges for traditional banks that remain cautious about direct exposure to digital assets. To address this, financial institutions are collaborating with licensed crypto custodians and auditors to validate digital wealth holdings. ABC Banking has partnered with fintech provider Payment Asia Group to establish a verification process for digital asset portfolios.
Hong Kong’s ambition to become a global digital asset hub aligns with these developments. In February, the Securities and Futures Commission (SFC) introduced a comprehensive framework for virtual asset regulation, enhancing custodial services, refining trading platform oversight, and tightening anti-money laundering measures. The SFC is also working on guidelines that will enable professional investors to trade crypto derivatives and access new token listings.
According to Chainalysis’ Global Crypto Adoption Index, Hong Kong recorded 85.6% year-over-year growth, securing its position as East Asia’s fastest-growing crypto market and ranking 30th globally.
Gateway to Growth
Despite global economic uncertainties, Ah-Chuen remains optimistic about Hong Kong’s investment potential. “When you fall, you must find new paths to growth,” he said. “InvestHK has been aggressively promoting various programs, particularly in family offices and investment frameworks, drawing talent and capital from around the world.”
Official data suggests that these efforts are paying off. Since its relaunch in March 2024, the CIES has received over 880 applications. The Office for Attracting Strategic Enterprises, established in late 2022, has successfully brought 66 enterprises to Hong Kong, spanning sectors such as artificial intelligence, financial technology, life sciences, and advanced manufacturing.
“Hong Kong’s track record as an international financial centre remains unmatched,” Ah-Chuen said. “With global wealth continuing to expand, the city is leveraging its deep expertise in international finance to attract more investors.”
He emphasised Hong Kong’s sophisticated banking infrastructure and extensive investment services as key advantages. “The presence of major international banks, combined with the city’s efficient operations and comprehensive offerings for family offices, creates compelling opportunities for our banking products’ global diversification,” he noted.
Hong Kong’s strategic location as a gateway to the Chinese mainland further strengthens its appeal. “The mainland’s economic influence is undeniable, and Hong Kong’s connection to this powerhouse makes it an essential player in global business,” Ah-Chuen added.
The historic relationship between China and Mauritius also plays a significant role in ABC Banking’s expansion plans. Their diplomatic ties, established in the 1970s, were reinforced by a free trade agreement that took effect in January 2021, China’s first with an African nation.
Mauritius, an island nation of 1.26 million people, has transformed into a diversified economy where financial services contribute 40% of GDP, alongside tourism, manufacturing, fisheries, and information technology.
Trade between China and Mauritius has strengthened in recent years. In 2023, Mauritius imported $993 million in goods from China while exporting $26.3 million in return.
Ah-Chuen remains optimistic about the future of Hong Kong-Mauritius business ties. “We are building on decades of goodwill and trust to strengthen our presence in both the HKSAR and the mainland,” he said.
