Only 47% of retail cryptocurrency investors in Hong Kong are aware of the virtual asset trading platform regulatory regime, a legislation that came into effect in June this year to protect the interests of retail investors in digital assets in the region.
This is according to October 11 a report By the Financial Investment and Education Council (IFEC) of Hong Kong. In its survey, IFEC noted that nearly 25% of Hong Kong adults aged 18 to 29 had invested in cryptocurrencies over the past year, three times the demographic average and a significant increase compared to 2019, when it was 3%. Only participants in the aforementioned demographic group reported investing in crypto.
Despite the improvement in adoption, most Hong Kong residents said their top investment preferences were stocks (96%), mutual funds and trusts (24%), followed by bonds (18%). Overall, about three-quarters of respondents said that the primary goal of investing in cryptocurrencies is to make “short-term profits,” coupled with “fear of missing out.” The survey included 1,000 participants between the ages of 18 and 69 years.
“Investors should understand product characteristics and related risks before investing, in order to align their choices with their financial objectives and risk tolerance level,” IFEC Director-General Dora Lee said in response to the findings. Meanwhile, Eric Choi, Head of Applied Social Sciences at PolyU, commented: “Virtual asset investors should think more deliberately and rationally. They should also build their financial knowledge and collect high-quality market information to avoid irrational investment behavior and biases.” “
Starting in June, Hong Kong legalized retail cryptocurrency trading for licensed exchanges, with mixed results. During this time, the largest Ponzi scheme in Hong Kong history, the $166 million JPEX cryptocurrency exchange scandal, was uncovered in the Special Administrative Region of China.
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