KPMG: HNWI in Singapore and Hong Kong Are Keen on Crypto

  • The KPMG report noted that regulatory clarity in Hong Kong and Singapore could improve in the coming months.
  • Both Hong Kong and Singapore are advancing their use of digital assets.

The bear market has affected the prices of cryptocurrencies such as Bitcoin and Ethereum and scared investors off the industry. However, a new KPMG report revealed that the wealthy classes in Hong Kong and Singapore have an increased interest in digital assets.

The report stated that over 90% of family offices and high-net-worth individuals (HNWIs) are looking at investing in digital assets, while some have already done so. Research by KPMG China and Aspen Digital revealed that 58% of family offices and high-net-worth individuals who responded to a recent poll have already invested in digital assets. About 34% of the participants intend to make similar investments.

In addition, 30 family offices and HNWIs in Hong Kong and Singapore participated in the poll, with the majority of those polled overseeing assets of around $10 million and $500 million. According to KPMG, the significant adoption of cryptocurrencies by the upper class has boosted industry confidence alongside an increase in mainstream awareness.

As a result, digital assets have gained considerable attention in both Singapore and Hong Kong. Additionally, the KPMG report noted that institutions now have easier access to financial solutions involving digital assets, including regulated products. However, despite increased awareness, respondents said they were several barriers hindering their participation in the digital assets market.

Some respondents cited market volatility, and issues with accurate valuation and regulatory clarity as possible barriers to investment in the digital market. The report’s authors wrote,

As digital assets are fairly new, there is still some uncertainty among FOs and HNWIs about investing in the sector, particularly regarding regulation and valuation.

Singapore residents are reportedly increasing their involvement in the digital market space. In September, the country’s wealthiest bank, DBS, noted that it was expanding its crypto services on its digital exchange (DDEx) to around 100,000 wealthy clients whose income qualifies them as accredited investors.

However, by increasing its service to wealthy clients, the DBS adhered to the views of local financial authorities that crypto assets are not appropriate for retail investors.

Hong Kong’s securities regulator recently declared its intention to relax current regulations for cryptocurrency trading and allow individual investors to make direct investments in digital assets.

Lawrence Woriji
Lawrence Woriji Verified Author

I have covered some exciting stories in my career as a journalist and find blockchain-related stories very intriguing. I believe Web3 will change the world and want everyone to be a part of it.

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