Hong Kong Experienced Crypto Break Out Year in 2021: Gemini Report
Hong Kong experienced a break out year for crypto investing in 2021 and currently, the city has a 24% adoption rate in crypto investors, according to a report by global cryptocurrency exchange Gemini.
The Global State of Crypto Report surveyed almost 30,000 adults across 20 countries and territories. The findings reported that more than half of crypto owners in Hong Kong, or 51%, started investing in crypto last year.
The Gemini report stated, “In 2021, (the) cryptocurrency reached a tipping point, evolving from what many considered a niche investment into a global, established asset class.”
While 37% or more than one-third of crypto owners in Hong Kong are women, the percentage is higher than in the United States (32%) and the United Kingdom (35%); however, 51% or more than half of crypto owners in Indonesia are women.
Including Hong Kong, these 20 economies that were surveyed were nations with developed and developing economies levels, and several Asia Pacific region (APAC) markets are leaders in cryptocurrency adoption.
Indonesia’s overall adoption rank was highest, with more than two in five (41%) in the country holding cryptocurrency despite warnings from the Financial Services Authority (OJK) on the market volatility of crypto and a decision by Majelis Ulama Indonesia (MUI) that cryptocurrency was not permissible under Islamic law.
For the primary driver of adopting crypto in APAC, the report mentioned that inflation is one of the key reasons to deal with, such as in Indonesia.
Although crypto adoption in Hong Kong has remained positive, there have been barriers to these investments.
According to the report, fear of losing funds through bad investments and security are top barriers to crypto adoption in the APAC. While in Hong Kong, 41% of investors were worried about price volatility, and 54% stated concerns about security as a barrier.
In addition, Hong Kong also shares similar concerns with Singapore regarding crypto being used as investments by retail investors. Without a clear clarity or positioning of crypto, that might not help both places to develop crypto business, despite both sides “have expressed a willingness to deliberate over-regulation and to provide greater clarity for crypto business,” according to the report.
In terms of crypto as means of diversifying assets, 46% or nearly half of the crypto owners in Hong Kong held the viewpoint.
According to the report, 79% of crypto investors globally accept crypto as a buy and hold long-term investment, and the APAC saw 82%. Among the APAC nations, 76% of investors in Hong Kong have their crypto investments for the long term.
The clarity in Hong Kong’s crypto regulation is yet to be provided for businesses as the city has been cautious about cryptocurrency being used as investments by retail investors. However, the report stated that the openness to cryptocurrency shown by regulators in Hong Kong predicts a higher rate of cryptocurrency adoption than in Europe.
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