As co-founder and general partner at early stage venture capital fund Race Capital, Edith Yeung has had a front-row seat to the development of the crypto sector, particularly in Hong Kong, where she was born and raised. Interestingly, he is a seed investor in Solana, investing $250,000 when SOL was only worth $0.04and is also an early investor in the Lightning Network. Since 2017, Yeung has also written the China Internet Reportan influential annual survey of technology trends in China.
Here, Yeung, who will be a speaker at Consensus Hong Kong, discusses Hong Kong’s continued development as a crypto hub, his view of China’s stance on crypto, what he foresees for Solana and a big prediction of crypto for 2025.
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The interview has been shortened and slightly edited for clarity.
How do you see crypto regulations developing in HK in 2025? Do you think more crypto companies will be licensed by the SFC in 2025?
Nice to see that Hong Kong already has one seven virtual asset trading platforms licensed by the SFC. From an investor’s perspective, having a clear licensing regime is a big step forward. Regulatory clarity and predictability are like well-lit roads — they give investors the confidence to move forward without worrying about unexpected detours.
That said, licensing alone is not enough. Liquidity is the other critical piece of the puzzle. Think of a trading platform like a brand-new highway: you can have the cleanest pavement and the clearest signs, but without cars, drivers won’t be distracted. Similarly, no matter how many licenses you have, without active trading and liquidity, investors will hesitate to come on board.
The key for Hong Kong today is to build not just infrastructure but traffic flow — because an efficient platform without fluidity is like an empty highway with nowhere to go.
What kind of role do you see Hong Kong developing in terms of the crypto sector, especially in relation to the US? What about Asia more broadly?
Hong Kong is the New York of Asia. Exchange Square is basically Wall Street — a 24/7 financial powerhouse with towering skyscrapers and streets filled with traders, investors and bankers whose energy never stops. If you are a crypto developer or investor, you will find a lot of TradFi talent (traders, market makers, etc.) in Hong Kong.
To build a successful TradFi or DeFi company, you need to hire specific types of talent that are hard to find even in Silicon Valley. Hong Kong boasts a rich financial history, with its stock market origins dating back to 1866 — over 150 years — means there is a deep pool of experienced professionals who can drive innovation and growth in your venture.
What would you say is different about HK/Southeast Asia for crypto compared to the US and Europe?
The US is home to the largest crypto addressable market in terms of institutional investors, regulators and builders. But Asia is home to the highest growth potential for the crypto market. In 2024, half of the world’s top 10 countries ranked by crypto adoption are located in Asia.
With the new Trump administration, the US will continue to set the tone for crypto regulation and institutional adoption (eg, BlackRock ETF). Asia will follow their lead with its massive user base that is young and crypto-native.
Do you view China as generally pro or anti-crypto? There has been a lot of crypto activity there, but at the same time, the government is officially against mining and speculation.
Hong Kong is part of China. The visible pro-crypto regulation slowly taking shape in Hong Kong is a good sign and indicator for China. That said, China literally has an army of 220 million retail investors sitting around $21 trillion worth of savings. With a lingering property crisis and weak economy, however, it is very difficult to say when China will reopen for crypto business, as the government focuses on these larger issues.
You are a seed investor in Solana; do you still have an initial investment there? Do you think Solana will continue to attract as much memecoin activity as it did in 2024?
Yes. It was an honor to meet Solana co-founders Anatoly Yakovenko and Raj Gokal and become their seed investor in March 2018. I am a long-term holder and supporter of Solana. What I like about them is their dedication to development and their support for the developer community. Developer energy in 2024 Breakpoint conference is high not only because of memecoins.
The Firedancer The team made huge technical advances last year, and I just love that Anatoly is still geeking out with people like the Jump Trading chief science officer Kevin Bowers and his team every day. What’s even more exciting to me is seeing traditional financial players like Fidelity, Citi and PayPal speak to Breakpoint about what they’re doing at Solana. The influx of established players not only proves Solana’s future but also indicates that blockchain technology is ready for the masses.
What types of companies are you currently looking to invest in and why?
I am a seed investor in Huma Finance — a leader in PayFi building in Solana and a leader in stablecoin infrastructure. In 2024, they finished $2 billion in stablecoin transactions. At Race Capital, we will continue to focus on investing in internet infrastructure. Builders who want to be around for the long haul don’t care if it’s an up or down cycle.
What do you think will happen in 2025 that will surprise crypto people?
The establishment of a US Bitcoin Reserve by the end of 2025. The United States is currently the largest holder of Bitcoin, with approximately 207,189 bitcoins. This effort will be fueled by this massive stockpile, which is now worth more than $20 billion at current prices. This decision is expected to increase bitcoin prices, prompting other governments around the world to follow suit.
What are you most excited to discuss on stage in Hong Kong?
Hong Kong’s role in building the crypto industry in 2025, China’s love/hate relationship with crypto and perhaps more Solana insights.
