Hong Kong has recently become one of the most prominent countries in the cryptocurrency markets. The Virtual Asset Trading Platform Regulation law, implemented in June by the country’s government to support crypto assets, received praise from all sectors. However, a recent study revealed that only 47% of crypto investors residing in Hong Kong were aware of this regulation.
Survey Results Surprised Everyone
A report published by the Investor and Financial Education Council (IFEC) on October 11 exposed this situation. According to the survey conducted by IFEC, only 25% of Hong Kong citizens between the ages of 18 and 29 have invested in cryptocurrencies. This indicates a significant increase in the number of cryptocurrency investors in the country compared to 2019.
With the legal process adopted by the Hong Kong government since June, individual crypto trading services for licensed exchanges were legalized, leading to some problems in the country. In June, Hong Kong witnessed the largest Ponzi scheme scandal in its history. The JPEX cryptocurrency exchange scandal resulted in a loss of $166 million, and the case was transferred to China’s Special Administrative Region.
Citizens Are Not Fond of Crypto Assets
Despite the law implemented by the government, survey results reveal that 96% of Hong Kong citizens prefer stocks, 24% prefer investment funds, and only 18% prefer bonds. Approximately 75% of the respondents stated that they chose cryptocurrencies to achieve high income in a short period. The survey conducted by IFEC involved 1,000 citizens between the ages of 18 and 69. Dora Li, the general manager of IFEC, made the following comment regarding the results:
“Investors should understand the product features and related risks before making investments in order to align their choices with their financial goals and risk tolerance levels.”
Eric Chui, the Head of the Department of Applied Social Sciences at PolyU, commented on the cryptocurrency markets:
“Crypto asset investors should think more consciously and rationally. They should also improve their financial literacy and gather high-quality market information to avoid irrational investment behaviors and biases.”
