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Singapore is expected to get major crypto investments

High-net-worth individuals in Hong Kong and Singapore are eager to invest in cryptos despite the prolonged bear market

Shashank Bhardwaj
Published: Oct 25, 2022 05:29:11 PM IST

Singapore is expected to get major crypto investmentsImage: Shutterstock

A recent survey from KPMG suggests that over 90 percent of family offices and high-net-worth individuals (HNWI) are either interested in investing in the digital assets field or have already done so. This suggests that Hong Kong and Singapore's wealthy elite look at digital assets with zeal.

Up to 58 percent of family offices and HNWI respondents to a recent poll are already investing in digital assets, and 34 percent "plan to do so," according to a research published on October 24 by KPMG China and Aspen Digital titled "Investing in Digital Assets."

Thirty family offices and HNWIs in Hong Kong and Singapore participated in the poll, with most respondents managing assets between $10 million and $500 million.

According to KPMG, the significant adoption of crypto assets 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 wealthy clients who meet the criteria around their income to be classified as accredited investors.

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

The majority allocate less than 5 percent of their portfolio to digital assets, mostly in the form of Stablecoins, Ether, and Bitcoin, but the allocations are still quite minimal.
According to respondents, market volatility, challenges with correct valuation, and a lack of regulatory certainty on digital assets are a barrier to investment in the sector.

However, KMPG pointed out that the two nations' regulatory clarity may improve. Hong Kong's securities regulator recently declared its desire to relax present regulations for crypto trading and permit small-scale investors to make direct investments in virtual assets.

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

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash