The vast majority of Hong Kong’s digital asset buyers chase short-term returns, embrace crypto as an funding development, and concern lacking alternatives.
One of many key findings of the “Retail Investor Analysis 2023” report was that 75% of the surveyed digital asset buyers within the city-state spend money on digital property with the intention of pursuing short-term returns.
Moreover, 74% of respondents believed that digital property are an funding development, indicating a widespread notion of their potential for progress and profitability.
One other 73% expressed issues about lacking out on funding alternatives, showcasing the concern of being left behind on this quickly evolving market.
The report, carried out by the Division of Utilized Social Sciences on the Hong Kong Polytechnic College, examined the habits of digital asset buyers in Hong Kong.
Frequent Considering Patterns Amongst HK Crypto Traders
The research recognized a number of widespread pondering patterns amongst digital asset buyers, characterised by shortcuts and biases.
These patterns included the tendency to depend on available data, often known as availability, and the extreme emphasis positioned on previous data, often known as anchoring.
One other prevalent sample was overconfidence, the place buyers overestimated their talents and believed they might outperform the market.
These patterns, together with others, have been categorized into 5 varieties, together with “Following the Pattern Sort,” “Snake Chunk Obedient Sort,” “Personal Expertise Sort,” “Instinct Growth Sort,” and “Wishful Considering Sort.”
Regardless of the respondents’ demonstrated data of monetary administration, the research additionally revealed the necessity for enchancment of their monetary administration behaviors and attitudes.
The Funding Committee emphasised the significance of a complete strategy to funding decision-making.
It suggested buyers to train vigilance and defend their property, achieve an intensive understanding of the traits and dangers related to funding merchandise, and strategy funding selections with care, continuously reviewing and reflecting on their very own behaviors and attitudes.
Hong Kong Launches New Regulatory Regime
Again in June, Hong Kong applied its new regulatory framework for crypto.
The brand new rulebook allows retail investors the flexibility to commerce digital property, as a substitute of proscribing digital property buying and selling to skilled buyers and merchants with no less than $1 million in bankable property.
As a part of the brand new laws, the SFC has additionally began offering licenses to crypto exchanges.
OSL and Hashkey Group have turn into the primary crypto exchanges within the metropolis to obtain licenses from the SFC.
Additionally they take pleasure in crypto-to-fiat conversion companies from ZA Financial institution, the biggest online-only financial institution in Hong Kong.
The financial institution permits customers of the buying and selling platforms to withdraw crypto deposits in US {dollars}, Hong Kong {dollars}, and Chinese language yuan.
Extra just lately, crypto alternate Hong Kong VAEXC (VAEX) applied for a virtual asset trading platform license with the SFC.
As reported, the JPEX scandal, thought to be probably the biggest monetary fraud in Hong Kong‘s historical past, has additional prompted the Hong Kong government to expedite the approval course of for cryptocurrency merchandise to advertise compliance within the trade.