Hong Kong‘s blockchain application and software sector has experienced a substantial 250% increase since 2022, according to a recent report published by InvestHK and partner organizations.
This surge underscores the city’s growing prominence as a hub for fintech and digital asset development in Asia.
Blockchain Sector Leads Hong Kong’s Fintech Expansion
The report, which analyzed 1,100 fintech companies operating in Hong Kong in July 2024, shows significant growth across various fintech sub-sectors.
With 175 blockchain companies now operating in Hong Kong, the sector has seen significant growth, particularly 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 blockchain sector, with 175 companies, grew 250% in two years. Source: The Hong Kong Fintech Ecosystem Report 2025Massive Growth Projected for Hong Kong’s Fintech Market
Hong Kong has established itself as a leading financial center, ranking first in Asia Pacific and third globally in the Global Financial Centers Index (GFCI) 36 report.
Since 2015, the Hong Kong government has invested significantly in fostering the fintech sector. Projections indicate the Hong Kong fintech market’s revenue could reach $606 billion by 2032, with an anticipated annual growth rate of 28.5% from 2024 to 2032.
According to the report, Hong Kong currently holds the highest number of fintech companies in wealthtech, blockchain, digital asset and cryptocurrency, and payment and remittance, as well as in other fintech enterprise solutions.
The survey also highlighted the prevalence of artificial intelligence (AI) within the fintech landscape, with over 73% of participating companies operating in this sub-sector. Additionally, nearly 45% are involved in accelerator and innovation labs and 41.5% in the digital asset and cryptocurrency space.
AI dominates Hong Kong’s fintech, with over 73% of companies involved. Source: The Hong Kong Fintech Ecosystem Report 2025Hong Kong’s Regulatory Steps
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.
The post Hong Kong Blockchain Sector Surges 250% Since 2022: Report appeared first on Cryptonews.
