PANews reported on January 4 that according to Hong Kong 01, some employees in overseas regions accept Bitcoin as salary, but it is not common in Hong Kong. The reason is that the Hong Kong Employment Ordinance stipulates that wages must be paid in the form of money, and cryptocurrencies are not legal tender, so employers may violate the law by using Bitcoin. Some technology companies have used Bitcoin as a start-up bonus or reward, and there is no big legal problem. However, from the perspective of mortgages, Bitcoin cannot be regarded as non-fixed income such as bonuses. When banks generally calculate the income of borrowers, they will average the bonuses they received in two years into the Debt-To-Income Ratio (DTI), and have the opportunity to apply for a mortgage of up to 90%; but Bitcoin is not a legal tender. Even if employees continue to receive Bitcoin as rewards or bonuses, or if Bitcoin income is mentioned in tax returns, banks will not accept it. Borrowers can only calculate DTI based on salaries, bonuses and commissions received in legal currency.
Hong Kong banks have not yet recognized Bitcoin. Currently, they only accept cash, stocks, foreign currencies, Hong Kong properties, funds and bonds. Some banks also accept insurance policies with no premium financing as applicants' assets, but there are no successful cases of Bitcoin. The reason is that Hong Kong banks do not recognize cryptocurrencies. The only feasible method is to cash out the cryptocurrency and then use the funds as a down payment for home purchases, or apply for a mortgage based on the asset level. According to the latest regulations, there is a chance to apply for a loan of up to 70%. It should be noted that if you cash out and then apply for an asset mortgage with cash, some banks require customers to keep it in their accounts for more than 3 months, and they also need to show their bank monthly statements. If it shows that the funds are from selling cryptocurrencies, banks will pay great attention to the source of funds or assets, and buying and selling cryptocurrencies can easily involve money laundering activities. Banks may need to eliminate risks, not only refusing to approve mortgages, but there is even a chance that bank accounts will be blocked.
