KPMG report found that a bear market doesn’t prevent family offices and high-net-worth individuals in Hong Kong and Singapore to invest in crypto

Hong Kong and Singapore’s High-Net-Worth Individuals are Keen on Crypto Investments. Source: shutterstock.com

According to an Oct. 24 report from KPMG China and Aspen Digital, over 90% of family offices and high-net-worth individuals (HNWI) are either interested in investing in digital assets or have already done so.?

The audit, tax, and advisory giant has surveyed 30 family offices and HNWIs in Hong Kong and Singapore. Most respondents manage assets between $10 million to $500 million. It appeared that 58% of survey respondents are already investing in digital assets, and 34% “plan to do so.”?

KPMG added that the large crypto uptake among the mega-wealthy individuals has increased confidence in the sector, along with “mainstream institutional attention.” Nevertheless, there are plenty of obstacles that hinder mainstream crypto adoption. namely, the respondents cited market volatility, difficulties in accurate valuation and lack of regulatory clarity on digital assets as the main factors stopping massive investment in the sector.?

At the same time, KMPG noted that regulatory clarity in the two countries in question could be changing for the better. By March 2024, all virtual asset service providers in Hong Kong will receive a license. Its securities regulator also aims to allow retail investors to invest directly in digital assets and to reconsider current crypto trading requirements.

Singapore is also planning to clarify and enhance its cryptocurrency regulations. MAS has been recently expanding crypto trading for accredited investors. Besides, several exchanges have received preliminary approval to provide Digital Payment Token services in the city-state.

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