Lower than 50% of Hong Kong Retail Crypto Buyers Conscious of Related Laws

A latest survey has highlighted that solely 47% of retail cryptocurrency traders in Hong Kong are knowledgeable in regards to the Digital Asset Buying and selling Platform Regulatory Regime.

This laws was launched in June with the first goal of safeguarding the pursuits of retail traders in digital belongings inside the area. This data was unveiled in a report dated October 11 by the Investor and Monetary Schooling Council (IFEC) of Hong Kong.

The survey performed by IFEC additionally make clear the funding patterns of Hong Kong residents. It was discovered that almost 25% of Hong Kong adults aged between 18 to 29 have ventured into cryptocurrency investments up to now 12 months.

This determine represents a threefold enhance from the demographic common and is a big leap from 2019, the place solely 3% of people on this age group reported such investments.

Nevertheless, regardless of the rising curiosity in cryptocurrencies, conventional funding avenues stay the best choice for many Hong Kong residents.

A whopping 96% of respondents expressed their desire for shares, whereas mutual funds and trusts have been favored by 24%. Bonds adopted carefully, garnering curiosity from 18% of these surveyed.

Curiously, the survey, which included 1,000 respondents aged between 18 and 69, revealed that round three-quarters of them seen “short-term income” as the first motivation behind their cryptocurrency investments. This was carefully tied with the pervasive “concern of lacking out” sentiment.

In response to the survey outcomes, IFEC common supervisor, Dora Li, emphasised the significance of investor training. She acknowledged, “Buyers ought to perceive the product traits and associated dangers earlier than investing, with the intention to align their decisions with their monetary objectives and threat tolerance degree.” Echoing her sentiments, Eric Chui, the top of the Division of Utilized Social Sciences at PolyU, suggested digital asset traders to behave extra intentionally and rationally.

He additional pressured the necessity for enhancing monetary literacy and gathering high-quality market data to avoid irrational funding behaviors and biases.

The backdrop to this survey is the legalization of retail crypto buying and selling for licensed exchanges in Hong Kong that befell in June. Nevertheless, this era additionally witnessed the unfolding of the biggest Ponzi scheme in Hong Kong’s historical past, the $166 million JPEX crypto alternate scandal, which despatched shockwaves by way of the Particular Administrative Area of China.