With a recent report released by migration platform Multipolitan ranking Hong Kong as the second-most crypto-friendly city in the world, it is apparent that the city is rapidly solidifying its position as one of the global dominators for cryptocurrencies. The report cites the city’s favorable blend of tax policies and overwhelming concentration of wealth as determining factors attracting industry wealth, talent, and innovative breakthroughs.
Almost Beating Ljubljana: A Steep Climb Towards Crypto Supremacy
Multipolitan’s Crypto Friendly Cities Index, part of their comprehensive Crypto Report 2025, has marked Hong Kong only behind Ljubljana, the capital of Slovenia. Hong Kong’s close second-place ranking underscores the remarkable progress it has made towards facilitating the digital asset industry.
The Multipolitan index, as detailed in the report, evaluates the cities for the crypto communities based on the regulations towards digital assets, socio-economic tax benefits, and the infrastructure levels available to support blockchain technology cumulatively to the wealth potentially available in the cities. This puts Hong Kong above the most prominent crypto centers, including Singapore, Zurich, and Abu Dhabi.
The indicators further access Hong Kong with one of the highest average holdings per crypto holder, measuring US$97,500, validating the city’s position as a wealth concentration for individuals attracting significant digital stakes. Slovenia leads with an average of US$240,500, followed closely by Cyprus with US$175,000.
The Whale Migration: Pursuing New Favorable Jurisdictions
The report mentions increased activity from certain crypto whales—persons possessing significant holdings of virtual assets—seeking out alternative places of residence and even second citizenship for themselves in countries that have a neutral taxation policy or are friendly to cryptocurrencies. For example, the United Arab Emirates, and particularly Dubai, has been very attractive to many industry wealthy because of the Golden Visa program, which grants 10-year residency for a 2 million dirham (USD 544,500) investment. I also tend to think that Hong Kong’s strong ranking means they will remain an attractive option for some time.
Constructing a Regulatory Framework: Taking Action and Leading the Hong Kong Way
Gonzalez and her team from the Hong Kong Financial Services and the Treasury Bureau (FSTB) noticed a gap and have been meticulously working on filling it as part of the broader Virtual Assets Policy Framework of Hong Kong State. Hong Kong has been actively developing a comprehensive regulatory framework for virtual assets since 2022. This proactive approach encompasses the creation of new rules for companies wishing to operate digital asset marketplaces in the territory. The Securities and Futures Commission (SFC) has licensed 10 virtual asset trading platforms to date, including Bullish, who in February became the first international crypto exchange to receive such a license.
Web3 Aspirations: Industry Growth Signs Despite Challenges
Despite facing high regulatory hurdles and compliance costs, Hong Kong’s goal of becoming a leading Web3 hub shows the report’s optimism regarding the industry’s growth this year. This optimism takes the form of a global shift in attitudes toward digital assets — acceptance and adoption are increasing across the world.
Trump’s “Pro-Crypto Pivot”: A Potential Global Driver
The report cites the effect of US President Donald Trump’s increasingly pro-crypto policies as potentially impactful. His administration’s apparent shift away from antagonistic regulatory battles that forced crypto businesses out to more welcoming markets may trigger a “regulatory domino effect globally,” offsetting other countries’ policies restrictive to the adoption of digital assets.
Conferences and Industry Leaders: Hong Kong’s Vibrant Scene
It was in winter that the city hosted an international expansion of the Consensus conference that was organized by CoinDesk, which is owned by Bullish. This is further proof of Hong Kong gaining global attention in crypto. Also, crypto celebrity Zhao Changpeng, Binance’s co-founder who lives in Dubai, has been attending a number of events in Hong Kong, where he has met other notable cretins from the world of crypto, such as Tron’s Justin Sun and Vitalik Buterin, co-founder of Ethereum.
Hong Kong, a New Emerging Crypto Power
The Hong Kong statement encapsulated in the Multipolitan report places the city in the foremost position regarding digital currencies, only behind crypto-friendly Ljubljana. The city’s proactive regulatory stance, its concentration of wealth, and the rising activity in the region all indicate enhanced focus on digital assets. As we move through the Web3 world, we can see benevolent forces shower crypto-centered Hong Kong, which now seems to be striving for the attention, talent, wealth, and innovation waiting to be snatched from her grasp to secure the leading position in the crypto world.
