Hong Kong's Blockchain Sector Surges 250% Amid Progressive Policies

The blockchain sector in Hong Kong has witnessed a remarkable surge, with a 250% increase in the number of companies since 2022. This growth is attributed to substantial government investment and progressive policies that have positioned Hong Kong as a leading fintech hub in Asia. The recent report, published by InvestHK and partner organizations, highlights the city's growing prominence in the fintech and digital asset development landscape.

The report, which analyzed 1,100 fintech companies operating in Hong Kong in July 2024, reveals significant growth across various fintech sub-sectors. Notably, the blockchain sector has seen a substantial expansion, with 175 companies now operating in the region. This growth is particularly pronounced among application/software firms, which have expanded by 250% in the last two years. The digital asset and cryptocurrency sector also saw a nearly 30% increase, reflecting the impact of Hong Kong’s progressive policies on digital assets and Web3, which were initiated in October 2022.

Hong Kong's proactive approach to blockchain and innovation is evident in its regulatory framework and initiatives. In October 2022, the Financial Services and the Treasury Bureau (FSTB) issued a policy statement recognizing the potential of virtual assets and distributed ledger technologies (DLT). A new licensing regime for virtual asset trading platforms (VATPs), operating under the principle of “same activity, same risks, same regulation,” took effect on June 1, 2023. As of February 2025, Hong Kong has 10 SFC-licensed VATPs, with 8 more applications pending.

Further demonstrating its commitment to digital asset development, Hong Kong listed the first Bitcoin (BTC) and Ether (ETH) futures exchange-traded funds (ETFs) in Asia in December 2022, and issued the world’s first government tokenized green bonds in February 2023, with a second issuance in February 2024. In April 2024, Hong Kong launched the first spot Bitcoin and Ether ETFs in Asia. The Securities and Futures Commission (SFC) has also streamlined the licensing process for VATPs, announcing a revamped second-phase assessment in January 2025. In February 2025, Hong Kong’s SFC unveiled “ASPIRe,” a 12-point roadmap to solidify the city’s position as a global virtual asset hub. This plan focuses on boosting security, innovation, and growth by refining regulations, expanding services, and enhancing investor protection.

This surge in the blockchain sector underscores Hong Kong's growing prominence as a hub for fintech and digital asset development in Asia. The region's commitment to fostering innovation and its proactive regulatory approach have created a conducive environment for the growth of blockchain and digital asset companies. With a significant increase in the number of companies and a robust regulatory framework, Hong Kong is well-positioned to continue its leadership in the fintech sector.