: HK’s super-rich and Singapore’s crypto investors
After a KPMG report, which suggests that over 90% of Singapore’s wealthiest elite are either interested in digital assets or have done so already, Hong Kong and Singapore appear to be embracing digital assets with enthusiasm.
According a report by KPMG China and Aspen Digital, “Investing In Digital Assets” reveals that 58% of respondents to a survey titled “Investing In Digital Assets” were already investing in digital assets. 34% of those surveyed “plan to do so.”
This survey surveyed 30 family offices in Hong Kong and Singapore, and found that most respondents had assets between $10 million and $500 million.
KPMG stated that the high crypto adoption among the ultra-wealthy has increased trust in the sector due to the rise in institutional attention.
The report also indicated that institutions have greater access to digital asset financial products, even regulated ones.
DBS, Singapore’s largest bank, announced in September that they would expand crypto services on their digital exchange (DDEx), to approximately 100,000 wealth clients who meet income criteria to be classified as accredited investors. This will ensure compliance with the financial authorities’ view, that crypto assets are not suitable to retail investors.
Crypto exchange Coinhako, however, announced in October that they were one of a few firms to be granted a license by the Monetary Authority of Singapore to offer Digital Payment Token services.
The allocations are still relatively low, with most allocating less that 5% to digital assets, mainly in Ether ( ETH) or Bitcoin ( TTC), and stablecoins.
Respondents pointed out that market volatility, difficulties in accurately valuing digital assets and a lack of regulatory clarity regarding digital assets are still obstacles to investing in this sector.
The report’s authors wrote that digital assets are still relatively new and there is uncertainty among HNWIs and FOs regarding investing in this sector, especially regarding regulation and valuation.
KMPG however noted that there could be a shift in regulatory clarity between the two countries.
“For example, all VASPs (virtual asset service providers) in Hong Kong will need to apply for a license before March 2024. Singapore plans to expand its cryptocurrency regulations.
Hong Kong’s securities regulator recently announced that it will allow retail investors to invest directly in digital assets, and to review current crypto trading requirements.
Related: Coinbase receives in-principle approval to obtain a Singapore crypto license
The Monetary Authority of Singapore has expanded crypto trading for accredited investors. Several exchanges received preliminary approval to offer Digital Payment Token services within the city-state.
Anchorage Digital president Diogo Monica, co-founder of Anchorage Digital, stated earlier this month that his company chose Singapore to be a “jumppoint” into the larger Asia market due to its strong regulatory environment .
It’s about being in a crypto-friendly regime where businesses are able to do business. We are institutional-only, and institutions are moving to Singapore so we are following their lead.”
