Amid the harshness of the bear market, some wealthy individuals and family offices in Hong Kong and Singapore are heavily investing in cryptocurrency according to the latest report by KPMG and Aspen Digital.
The report titled “Investing in Digital Assets” shows that high-net-worth individuals in Hong Kong and Singapore currently possess some volume of digital assets or are moving towards securing some cryptocurrencies.
It was further suggested that more than 90% of family offices have also shown interest in the digital assets space while 58% of family offices have already acquired some digital assets.
A new report from KPMG and @AspenDigitalAMP finds that more than 90% of surveyed family offices and #HNWIs in Hong Kong and Singapore are investing in #digitalassets or planning to do so amid rapid growth of the sector and the emergence of new products. https://t.co/yBFPlBiVx2 pic.twitter.com/vMEfb53ksP
— KPMG China (@KPMGChina) October 25, 2022
The survey reportedly sampled about 30 family offices and wealthy individuals in Hong Kong and Singapore with the average net worth of the respondents between $10 million and $500 million.
KPMG further disclosed that there has been a surge in the crypto uptake among the ultra-wealthy people, thereby boosting confidence in the crypto space.
It was also reported that several institutions interested in Web3 space now have unfettered access to digital assets products comprising regulated products.
Recall that Singapore’s largest bank, DBS, said in September that it would start providing crypto services on its digital exchange (DDEx) to about 100,000 wealthy clients having fulfilled some criteria.
Meanwhile, some respondents in the survey reveal that the lack of regulatory clarity over digital assets in Hong Kong and Singapore continues to discourage some intending investors.
It appears this is waning off as KPMG reported that all virtual asset service providers (VASPs) in Hong Kong will be mandated to apply for a license by March 2024. In the same vein, Singapore is planning to ease its cryptocurrency regulations.
Crypto Expansion In Singapore, Hong Kong
More than ever before, cryptocurrency is gaining ground in Singapore and Hong Kong. Singapore’s central bank recently granted a preliminary approval to the crypto exchange, Blockchain.com, in providing crypto services.
Prior to them, United States based crypto exchange, Coinbase, was also granted operational license on Oct. 11 to commence Digital Payment Token (DPT) services in the city-state.
Hello Singapore 🇸🇬
Excited to announce we have received an In-Principle Approval as a Major Payment Institution in the Lion City! This is an important step in our mission of being the most trusted crypto platform in Asia Pacific.https://t.co/pc2pkTl7yG
— Coinbase (@coinbase) October 11, 2022
Similarly, Hong Kong is making an effort to allow retail investors to invest in cryptos.