KPMG: Hong Kong, Singapore Mega-rich Eyeing Crypto Investments

KPMG suggests that over 90% of family offices and high-net-worth individuals (HNWI) are either interested in investing in the digital assets space or have already done so. 

iexclusivenews reports that this suggests that Hong Kong and Singapore’s wealthy elite are looking at digital assets with fervor.

This online news outlet understands that up to 58% of family offices and HNWI respondents to a recent poll are already investing in digital assets.

And 34% “intend to do so,” according to research published on October 24 by KPMG China and Aspen Digital titled “Investing in Digital Assets.”

30 family offices and HNWIs in Hong Kong and Singapore participated in the poll. With the majority of respondents managing assets between $10 million and $500 million.

KPMG stated that the significant adoption of cryptocurrencies by the ultra-wealthy has boosted industry confidence due to a rise in “mainstream institutional attention.”

Additionally, it was mentioned that institutions now have easier access to financial instruments involving digital assets, including regulated ones.

Assuring adherence to the financial authorities’ view that crypto assets are not suitable for retail investors.

Singapore’s largest bank, DBS, announced in September that it was expanding crypto services on its digital exchange (DDEx). To approximately 100,000 wealth clients who meet the criteria around their income to be classified as accredited investors.

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What You Need To Know 

While cryptocurrency exchange Coinhako announced in October that they were one of a select few businesses to be granted a license by the Monetary Authority of Singapore (MAS) to provide services related to digital payment tokens.

The majority of investors only allocate less than 5% of their portfolio to digital assets, mostly in the form of stablecoins, ether, and bitcoin (BTC).

A barrier to investment in the sector, according to respondents, is market volatility, challenges with correct valuation, and a lack of regulatory certainty on digital assets.

“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,” wrote the report’s authors. 

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However, KMPG pointed out that the two nations’ regulatory clarity may be improving.

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

Hong Kong’s securities regulator recently declared its desire to relax present regulations for cryptocurrency trading. And permit small-scale investors to make direct investments in virtual assets.

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The Monetary Authority of Singapore (MAS) has increased access to cryptocurrency trading for authorized investors. And numerous exchanges have received preliminary clearance to offer services related to digital payment tokens in the city-state.

However, iexclusivenews Nigeria reports that Diogo Mónica, co-founder and president of Anchorage Digital. Stated earlier this month that Singapore was chosen as a “jump point” into the larger Asian market because of its robust regulatory framework.

“It’s about being in a regime that’s friendly towards crypto and that businesses want to do business in. We’re institutional only, institutions are going to Singapore, so we’re following suit.”