Hong Kong Recognized as Crypto-Friendly City
According to the newly released Crypto Report 2025 by migration platform Multipolitan, Hong Kong has achieved recognition as the second most cryptocurrency-friendly city globally. The report assesses various locales based on their approach to digital assets and ranks Hong Kong just behind Ljubljana, Slovenia’s capital, in the Crypto Friendly Cities Index. This index evaluates cities on several factors, including regulatory frameworks, tax regimes, and the robustness of digital infrastructures that support crypto activities.
Leading Rankings and Wealth Concentration
Ljubljana has taken the lead in the rankings, thanks to its active support for blockchain initiatives, where numerous businesses have incorporated cryptocurrency payments into their operations. Following Hong Kong in the index are Zurich, Singapore, and Abu Dhabi, showcasing the competitive landscape for crypto-friendly environments.
The report indicates that Hong Kong also ranks third internationally regarding the concentration of cryptocurrency wealth, with individuals holding an average of about $97,500 in digital assets. In comparison, Slovenia leads this category with an impressive average of $240,500 per holder, and Cyprus follows with $175,000.
Shifts in Residency for Crypto Investors
A notable trend highlighted in the findings is that prominent cryptocurrency investors, often referred to as “whales”, are increasingly seeking to establish residency in jurisdictions that offer favorable tax conditions. Cities like Dubai have emerged as popular choices, particularly with its Golden Visa program, which extends a ten-year residency option to individuals investing over $544,500.
Nirbhay Handa, CEO and co-founder of Multipolitan, remarked on this shift, noting that individuals are strategically selecting their residence based on how well these locations support their crypto-centric lifestyles. He pointed out that advancements in tokenized assets and decentralized governance are paving the way for a transformative societal framework.
Impacts on Hong Kong’s Property Market
Multipolitan, which was established in 2024 and is based in Singapore, aims to facilitate global mobility for those holding digital assets. The report underscores Hong Kong’s determination to develop a solid regulatory architecture for virtual assets, with the Securities and Futures Commission (SFC) already issuing licenses to ten crypto trading platforms, including Bullish.
The burgeoning cryptocurrency sector has stimulated Hong Kong’s property market, as many professionals from the crypto and hedge fund industries are increasingly contributing to the local residential rental scene, which has been under pressure due to diminished traditional demand. Despite the return of expatriates from Singapore, leasing activity in early 2025 remained focused on areas like Kowloon, particularly within lower rental price tiers.
Future Plans for Virtual Assets
Additionally, Financial Secretary Paul Chan announced at the Hong Kong Web3 Festival that the city plans to unveil a comprehensive virtual asset policy framework by year-end, further refining its strategy in embracing Web3 technology and its integration with conventional financial services.
