Professor Cai Hongbin, dean of HKU’s business and economics faculty, announced at a crypto forum this week that technical preparations are complete. “All the technical details have been sorted out. We will take Bitcoin and digital currencies for tuition fees and donations in the future,” he said during the CryptoFi Forum on Wednesday.

The university hasn’t set a launch date yet. HKU confirmed to the South China Morning Post that it is “actively exploring” digital currency payments as part of its commitment to financial innovation.

Timing Aligns with New Crypto Rules

The announcement comes just weeks after Hong Kong’s new Stablecoins Ordinance took effect on August 1, 2025. This law creates a licensing system for companies that issue digital currencies tied to traditional money like the US dollar.

Hong Kong now has eleven licensed virtual asset trading platforms approved by the Securities and Futures Commission. The city is working to compete with places like Singapore and the United Arab Emirates as a crypto-friendly financial center.

The timing isn’t accidental. Hong Kong wants to show it can balance innovation with proper oversight. The new stablecoin rules require companies to get licenses and follow strict rules about backing their digital coins with real assets.

University Prepared for Bitcoin’s Price Swings

Bitcoin’s price can change dramatically from day to day, which creates risks for any organization accepting it as payment. Professor Cai acknowledged this challenge but said the business school is ready to handle potential losses.

“If we lose money, we will be losing the money of the faculty. It’s ok, we can take care of it, but at least let us give it a try,” he explained at the forum.

Local lawmaker Johnny Ng Kit-chong supports the university’s plan. He suggested a simple solution: convert Bitcoin payments to Hong Kong dollars immediately. This would reduce the risk of losing money if Bitcoin’s price drops after payment.

Ng also emphasized that the university must follow Know Your Customer rules. These regulations require checking the identity of people making payments to prevent money laundering and other illegal activities.

Industry Leaders Show Support

The CryptoFi Forum attracted major figures from the crypto industry. Zhao Changpeng, founder of Binance cryptocurrency exchange, attended the event. He previously told reporters that Hong Kong has what it takes to become a major virtual asset hub, but the government needs to act quickly.

This support from industry leaders shows growing confidence in Hong Kong’s approach to crypto regulation. Unlike mainland China, which banned most cryptocurrency activities in 2021, Hong Kong is taking a more welcoming approach while maintaining strict oversight.

The city recently proposed tax exemptions for wealthy investors and funds that make money from cryptocurrency investments. This plan aims to attract more crypto businesses to set up operations in Hong Kong.

Global University Crypto Trend

HKU wouldn’t be the first university to embrace cryptocurrency. Harvard University recently revealed it holds $116 million worth of Bitcoin through investment funds. However, HKU would be among the first to accept Bitcoin directly for tuition payments.

The move reflects Asia’s growing role in cryptocurrency adoption. The Asia-Pacific region accounts for 43% of global crypto ownership, according to industry data. Hong Kong approved spot Bitcoin and Ethereum exchange-traded funds in April 2024, making it easier for institutional investors to buy these digital assets.

HKU’s business school ranks as Asia’s top institution, giving this announcement significant weight in the education sector. If successful, other universities in the region might follow similar approaches.

Some Hong Kong lawmakers are even pushing for the city to include Bitcoin reserves in its financial holdings, similar to what some countries like El Salvador have done.

What Happens Next

Students and donors will likely need to go through identity verification processes before making Bitcoin payments. The university must comply with anti-money laundering laws that require checking who is sending money.

Hong Kong’s new crypto regulations provide a clear legal framework that didn’t exist before. This regulatory clarity makes it easier for institutions like universities to explore cryptocurrency payments without worrying about legal problems.

The city’s approach contrasts with mainland China’s strict ban on cryptocurrency activities, showing how Hong Kong maintains some independence in financial policy under the “one country, two systems” arrangement.