Family Offices Will Drive The Adoption Of Digital Assets Across Asia

According to a joint analysis by professional services firm KPMG China and Hong Kong-based crypto asset management platform Aspen Digital, family offices and high net worth individuals (HNWI) will drive digital asset adoption across Asia.

The analysis, which was primarily based on a survey of 30 Hong Kong and Singaporean family offices and HNWIs conducted in the second quarter of this year, indicated that 92% of respondents were interested in digital assets.

Respondents to the poll highlighted the significant upside potential of digital assets, the growing mainstream institutional interest in digital assets, and the dismal returns of traditional financial instruments as reasons for their interest in digital assets.

Half of all respondents were concerned about significant volatility and a lack of study and valuation of digital assets, while 83% saw regulatory uncertainty as a key barrier to the widespread use of digital assets.

The report emphasized legislative developments in Hong Kong’s financial regulations, such as the June 2022 amendment to the Anti-Money Laundering and Counter-Terrorist Financing Bill, which will likely offer a more comprehensive and rigorous regime than existing regulations in Singapore, the United Kingdom, and Japan, limiting virtual asset service providers’ services to professional investors only.

Cryptocurrency exchanges were the most popular way for family offices and HNWIs to invest in digital assets, followed by cryptocurrency-focused hedge funds and direct investment in digital asset service providers.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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