As the Co-founder and General Partner at Race Capital, Edith Yeung has closely witnessed the evolution of the crypto landscape, especially in her hometown, Hong Kong. Notably, she was one of the first investors in Solana, investing $250,000 when the token was merely valued at $0.04. She has also been an early stakeholder in the Lightning Network and has authored the China Internet report, a vital examination of technology trends in China since 2017.

Yeung, who will be speaking at Consensus Hong Kong, shares her insights on how the city is progressing as a crypto ecosystem, her reflections on China's crypto policy, and her predictions for Solana and the wider crypto scene.

This series is sponsored by Consensus Hong Kong. Experience the premier event in Web3 and Digital Assets from Feb 18-20. Register today and get 15% off with code CoinDesk15.

How do you foresee the development of crypto regulations in Hong Kong in 2025? Do you believe more crypto companies will get licensed by the SFC?

"It’s thrilling to observe that Hong Kong now has seven SFC-licensed virtual asset trading platforms. From an investor’s stance, having a transparent licensing framework is a significant advancement. Regulatory certainty is comparable to well-illuminated roads, providing assurance to investors to proceed without unexpected complications."

Translation: "Having a clear licensing regime is a major step forward."

"Yet, licensing alone is not adequate. Liquidity is another essential component. A trading platform can be likened to a new highway; despite its excellent condition, if it lacks vehicles, it serves little purpose. Likewise, even with a multitude of licenses, if active trading and liquidity are absent, investors will be reticent to participate."

What role do you envision Hong Kong playing in the larger crypto sector, particularly concerning the U.S. and Asia?

"Hong Kong is the New York of Asia. With its bustling Exchange Square, it stands as a financial center where traders, investors, and bankers thrive. For anyone involved in crypto, the city is a treasure trove of financial talent, which may be hard to find elsewhere, including Silicon Valley. Given its robust financial history dating from 1866, Hong Kong has a rich well of experienced professionals capable of fostering innovation and growth in your venture."

What differentiates HK/Southeast Asia regarding crypto from the U.S. and Europe?

"The U.S. harbors the largest market for crypto when it comes to institutional investors, but Asia presents the highest growth potential for the crypto industry. By 2024, half of the top 10 countries by crypto adoption will be in Asia."

Finally, what significant predictions do you have for the crypto landscape in 2025?

"The establishment of a U.S. Bitcoin Reserve is anticipated by year-end 2025. Currently, the U.S. is the biggest holder of Bitcoin with roughly 207,189 bitcoins, valued at over $20 billion at the present price. Such a motion could drive Bitcoin prices higher, inspiring other countries to follow suit."