Only 47% of retail cryptocurrency investors in Hong Kong understand the regulatory system for virtual asset trading platforms. This legislation came into effect in June this year and aims to protect the interests of retail investors in the region in digital assets.
According to the daily report on October 11 Report Organized by the Hong Kong Investors and Financial Education Council (IFEC). IFEC pointed out in the survey that nearly 25% of Hong Kong adults aged 18 to 29 have invested in cryptocurrencies in the past year, which is three times the population average and a significant increase from 2019, while only 3% of respondents in this group Invested in cryptocurrencies. Report on investing in cryptocurrencies.
Despite increased adoption, the majority of Hong Kong people say their top investment preferences are stocks (96%), mutual funds and trusts (24%), followed by bonds (18%). About three-quarters of respondents said the main goal of investing in cryptocurrencies was “short-term profit” while being “worried about missing out.” The survey included 1,000 respondents aged 18 to 69.
Dora Li, general manager of IFEC, said in response to the results: “Investors should understand product characteristics and related risks before investing so that they can make choices based on their financial goals and risk tolerance levels.” Meanwhile, Cui Cui, head of the Department of Applied Social Sciences at PolyU Shi’an commented: “Virtual asset investors should think more prudently and rationally. They should also improve their financial literacy and collect high-quality market information to avoid irrational investment behaviors and biases.”
Starting in June, Hong Kong legalized retail cryptocurrency trading on licensed exchanges, but the results have been mixed. During this period, the largest Ponzi scheme in Hong Kong’s history, the $166 million JPEX cryptocurrency exchange scandal, was exposed in the Chinese Special Administrative Region.
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