Despite the ongoing bear market, family offices and wealthy individuals in Hong Kong and Singapore are looking to invest in crypto or already have assets.
More than 90% of KPMG’s family offices and high-net-worth individuals (HNWIs) are or have already been interested in investing in the digital asset space

According to an October 24 report titled “Investing in Digital Assets” by KPMG China and Aspen Digital, in a recent survey 58% of family offices and HNWI respondents already invest in digital assets, while 34% “plan to do so.”

The survey surveyed 30 family offices and large individuals in Hong Kong and Singapore, with the majority of respondents managing assets between $10 million and $500 million.

KPMG said the massive adoption of cryptocurrencies among the super-rich has boosted confidence in the industry, aided by an increase in “mainstream institutional interest.”

He also noted that institutions have greater access to digital asset financial products, including regulated products.

Singapore’s largest bank, DBS, announced in September that it has expanded its crypto services on its digital exchanges (DDEx) to approximately 100,000 wealthy clients who meet income criteria to be classified as accredited investors, ensuring compliance with the financial authorities’ view on these cryptoassets. Not suitable for individual investors.

Cryptocurrency exchange Coinhako, meanwhile, announced in October that it is among the few firms to be licensed by the Monetary Authority of Singapore (MAS) to provide digital payment token services.

However, allowances remain relatively small, with most dedicating less than 5% of their portfolios to digital assets, mostly bitcoin.

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and fixed coins.

Respondents cited market volatility and difficulty in accurate valuation, as well as a lack of clarity in digital asset regulation, which remains a barrier to investment in the industry.

“As digital assets are fairly new, there is still some uncertainty between FOs and HNWIs about investing in this sector, particularly regarding regulation and valuation,” the authors of the report write.

However, KMPG notes that the clarity of regulations in the two countries could change for the better.

“For example, all virtual asset service providers (VASPs) in Hong Kong will need to apply for a license by March 2024. Singapore also plans to expand its cryptocurrency regulations.”

The Hong Kong Securities Regulator recently announced that it wants to allow retail investors to invest directly in digital assets and review current requirements for cryptocurrency trading.

Related: Coinbase Gets Basic Approval for Singapore Cryptocurrency License

The Monetary Authority of Singapore (MAS) is expanding its cryptocurrency trading to accredited investors and several exchanges that have been pre-approved to provide digital payment token services in the city-state.

Earlier this month, Diogo Monica, co-founder and president of Anchorage Digital, said his company has chosen Singapore as a “gateway” to the wider Asian market because it has a strong regulatory framework.

“It’s about being in a crypto-friendly mode and what mode businesses want to do business in. We only work with institutions, institutions go to Singapore, we do the same.”

Source: CoinTelegraph