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A recent survey by KPMG suggests that over 90 percent of family offices and high net worth individuals (HNWIs) are either interested in investing in digital assets or have already done so. This suggests that Hong Kong and Singapore’s wealthy elite are eyeing digital assets with eagerness.
Up to 58 percent of family office and HNWI respondents to a recent poll are already investing in digital assets, and 34 percent “plan to do so,” according to a survey published Oct. 24 by KPMG China and Aspen Digital titled “Investing in Digital Assets. “
Thirty family offices and HNWIs in Hong Kong and Singapore participated in the poll, with most respondents managing assets between $10 million and $500 million.
According to KPMG, the significant use of cryptoassets by the ultra-wealthy has bolstered industry confidence due to an increase in “mainstream institutional attention.”
In addition, it was mentioned that institutions now have easier access to financial instruments involving digital assets, including regulated ones.
To ensure compliance with the financial authorities’ view that crypto-assets are not suitable for retail investors, Singapore’s largest bank, DBS, announced in September that it is expanding crypto services on its digital exchange (DDEx) to approximately 100,000 high-net-worth clients who meet the criteria around their income being classified as accredited investors.
While crypto exchange Coinhako announced in October that they were one of a select few businesses granted a license by the Monetary Authority of Singapore (MAS) to offer services related to digital payment tokens.
The majority allocate less than 5 percent of their portfolio to digital assets, mostly in the form of Stablecoins, Ether and Bitcoin, but the allocations are still quite minimal.
According to the respondents, market volatility, challenges with correct valuation and lack of regulatory security on digital assets are a barrier to investment in the sector.
However, KMPG pointed out that the two nations’ regulatory clarity could improve. Hong Kong’s securities regulator recently declared its desire to relax current crypto trading regulations and allow small-scale investors to make direct investments in virtual assets.
The Monetary Authority of Singapore (MAS) has increased access to crypto trading for authorized investors, and a number of exchanges have received preliminary approval to offer services related to digital payment tokens in the city-state.
The author is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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