As the co-founder and general partner at early stage venture capital fund Race Capital, Edith Yeung has had a front-row seat on the development of the crypto sector, particularly in Hong Kong, where she was born and raised. Most notably, she was a seed investor in Solana, investing $250,000 when SOL was valued at just $0.04, and also was an early investor in Lightning Network. Since 2017, Yeung has also authored the China Internet report, an influential annual survey of technology trends in China.

Here, Yeung, who will be a speaker at Consensus Hong Kong, discusses Hong Kong’s ongoing development as a crypto hub, her take on China’s stance towards crypto, what she foresees for Solana and one big crypto prediction for 2025.

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Interview has been condensed and lightly edited for clarity.

How do you see crypto regulations developing in HK in 2025? Do you think more crypto companies will become licensed by the SFC in 2025?

It’s exciting to see that Hong Kong now has seven SFC-licensed virtual asset trading platforms. From an investor’s perspective, having a clear licensing regime is a major step forward. Regulatory clarity and predictability are like well-lit roads — they give investors the confidence to drive forward without worrying about unexpected detours.

That said, licensing alone isn’t enough. Liquidity is the other critical piece of the puzzle. Think of a trading platform like a brand-new highway: you can have the smoothest pavement and clearest signs, but if no cars are on it, drivers won’t bother. Similarly, no matter how many licenses you have, if there’s no active trading and liquidity, investors will hesitate to come aboard.

The key for Hong Kong now is to build not just the infrastructure but the traffic flow — because a great platform without liquidity is like an empty highway going nowhere.

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 soaring skyscrapers and streets full of traders, investors and bankers with energy that never quits. If you are a crypto builder or investor, you will find many TradFi talents (traders, market makers, etc.) in Hong Kong.

To build a successful TradFi or DeFi company, you need to recruit 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 distinctive about HK/Southeast Asia for crypto compared to the US and Europe?

The U.S. 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 top 10 countries in the world ranked by crypto adoption were located in Asia.

With the new Trump administration, the U.S. will continue to set the tone for crypto regulation and institutional adoption (e.g., BlackRock ETF). Asia will follow their lead with its massive usage base that is young and crypto-native.

Do you view China as generally pro or anti-crypto? There’s 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. Seeing pro-crypto regulation slowly forming in Hong Kong is a great sign and indicator for China. That said, China literally has an army of 220 million retail investors sitting on almost $21 trillion worth of savings. With a lingering property crisis and a meek economy, however, it is very difficult to say when China will open up for crypto business again, as the government focuses on these larger issues.

You were a seed investor in Solana; do you still have your 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 that I got to meet Solana co-founders Anatoly Yakovenko and Raj Gokal and become their seed investor back in March 2018. I am a long-term Solana holder and supporter. What I love about them is their dedication to building and their support for the developer community. The developer energy at the 2024 Breakpoint conference was high not only because of memecoins.

The Firedancer team made huge technical advances last year, and I just love that Anatoly is still head-down geeking out with people like Jump Trading chief science officer Kevin Bowers and his team every day. Even more exciting to me is seeing traditional finance players like Fidelity, Citi and PayPal speaking at Breakpoint about what they are building on Solana. This influx of established players not only validates Solana’s future but also signals that blockchain technology is ready for the masses.

What kinds of companies are you currently looking to invest in and why?

I am a seed investor in Huma Finance — a leader in PayFi building on Solana and a leader in stablecoin infrastructure. In 2024, they did over $2 billion in stablecoin transactions. At Race Capital, we will continue to focus on investing in internet infrastructure. Builders who want to be around long-term do not mind whether it’s an up or down cycle.

What’s something you think will happen in 2025 that will surprise crypto folks?

The establishment of a U.S. 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 bolstered by this massive stockpile, which is now valued at over $20 billion at current prices. This decision is expected to drive up bitcoin prices, prompting other governments around the world to follow suit.

What are you most excited to discuss onstage in Hong Kong?

Hong Kong’s role in building the crypto industry in 2025, China’s love/hate relationship with crypto and perhaps more insights on Solana.