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Short-Term Crypto Investment Prevails Among Hong Kong’s Retail InvestorsHong Kong’s retail investor interest in virtual assets has experienced a significant surge in recent years, albeit a recent survey suggests that most retail investors take a short-term investment view relative to crypto assets.Photo by Robert Bye on UnsplashIFEC studyThis newfound enthusiasm for virtual assets emerges from a recent study published by the Investor and Financial Education Council (IFEC), a subsidiary of the Securities and Futures Commission (SFC), Hong Kong’s securities regulator. The survey found that 6% of retail investors in the city had entered the virtual asset market in 2023, as compared to merely 1% in 2019.Conducted from June to July of this year, the study encompassed 1,000 individuals aged between 18 and 69. The survey uncovered a trend toward crypto investing among retail investors who’ve been enticed by the allure of the emerging asset class. Intriguingly, every single one of the digital asset retail investors in the study held cryptocurrencies in their portfolios. Non-fungible tokens (NFTs) and stablecoins, while still relatively niche, were also present in the portfolios of 6% and 2% of investors, respectively.11% to invest in crypto within 12 monthsAnticipating a further uptick in interest, the IFEC report posits that 11% of those surveyed have intentions to invest in virtual assets or related products within the next 12 months. This indicates that the allure of virtual assets continues to exert its magnetic pull on investors in Hong Kong.Despite the growing interest, a noteworthy finding in the survey is that 75% of retail virtual asset investors admitted to their primary motivation being the pursuit of short-term gains. Simultaneously, 74% of these investors perceived virtual assets as a prevalent investment trend, and 73% cited the fear of missing out on popular investment opportunities as a driving factor. These statistics underscore the need for enhanced investor education within the sphere of virtual assets.Lack of regulatory awarenessAnother interesting aspect of the data which emerged from the survey was the finding that only 47% of all surveyed investors are aware of Hong Kong’s recently introduced virtual asset trading regulations, which came into effect on June 1.An additional facet of this investor behavior study was illuminated by research conducted by the Department of Applied Social Science at Hong Kong Polytechnic University (PolyU). This research, based on data from a separate IFEC report that surveyed 501 people from November to December of last year, revealed that many retail investors in virtual assets exhibited overconfidence in their judgment.These investors were also found to have a proclivity to overemphasize past information, lean heavily on readily available and easily recalled information, and overestimate personal intuition.With that in mind, Eric Chui, Head of PolyU’s Applied Social Science unit, advised virtual asset investors to adopt a more deliberate and rational approach. Chui emphasized the importance of building financial literacy and collecting high-quality market information to make informed investment decisions, while steering clear of irrational investment behavior and biases.

In a global effort to bolster regulatory control over the cryptocurrency sector, Asian nations feature prominently among 17 jurisdictions globally, who have implemented tighter cryptocurrency regulations in 2023. That’s the view expressed by blockchain analytics firm TRM Labs in a report published on Monday.Photo by CARTER SAUNDERS on Unsplash2023 notable for regulatory tighteningThe increased scrutiny comes on the heels of several crypto meltdowns in 2022, including the collapse of major platforms like Terraform Labs, Celsius, BlockFi and FTX, resulting in a market rout that wiped out trillions of dollars in value. The subsequent year witnessed an extraordinary surge in regulatory measures globally, with governments prioritizing consumer protection in the volatile crypto space. TRM Labs' report indicates that the jurisdictions strengthening consumer protection measures accounted for 80% of the 21 studied, representing 70% of global exposure to cryptocurrencies. As the crypto ecosystem grappled with the aftermath of the FTX collapse at the beginning of 2023, regulatory actions surged, shaping a transformative year for the industry. The TRM Labs report emphasizes that nearly half of the jurisdictions tightening crypto regulations in 2023 prioritized increasing consumer protection measures. Additionally, international organizations, including the G20, Financial Action Task Force, Financial Stability Board, International Monetary Fund and the International Organization of Securities Commissions, played a role in shaping global frameworks and policy recommendations for cryptocurrency regulation. While prominent regulatory moves included the European Union's implementation of the Markets in Crypto Assets Regulation (MiCA) in June, Asian countries were particularly active in rolling out regulatory controls and measures relative to digital asset markets.  Stronger measures in SingaporeSingapore, recognized as an early adopter of crypto regulation, took significant steps in November to curb retail speculation in cryptocurrencies. The city-state’s central bank and financial regulator, the Monetary Authority of Singapore (MAS), brought in these restrictions following a year-long public consultation process, together with a review of cryptocurrency platforms. The country set itself apart from other jurisdictions by becoming one of the first to finalize rules governing stablecoins. That regulatory action included the establishment of a comprehensive framework relative to stablecoin operations. South Korea and Australia increased scrutiny of the cryptocurrency sector, contributing to the global trend of regulatory tightening. Hong Kong licensingHong Kong introduced a new licensing regime for centralized crypto exchanges, aligning with its goal to become a global hub for virtual asset businesses. Following its major initiative in October 2022 to support the virtual asset sector, it has since implemented a mandatory licensing regime for centralized crypto exchanges, allowing them to accept retail investors. Eleven companies, including OKX, one of the largest exchanges by trading volume, have submitted applications for the license in the city. In December, Hong Kong followed Singapore’s lead, by proposing stringent rules for stablecoin issuers, prohibiting unlicensed companies from selling stablecoins to the city's retail investors through regulated channels or actively marketing their tokens within the city. These rules are considered challenging for stablecoin issuers and may potentially deter major stablecoin operators like Tether and USDC from entering the city, according to experts. As Hong Kong solidifies its regulatory stance, it positions itself alongside other major players, contributing to the global evolution of cryptocurrency oversight.

North Gyeongsang Province launches metaverse platform to become digital hubNorth Gyeongsang Province has officially launched its integrated metaverse platform Metaport, which aims to expand access to the metaverse — a key component of the digital economy — for the region’s citizens. It also serves to showcase the region’s cutting-edge technologies and establish it as a hub for emerging industries.Photo by Mimi Thian on Unsplash“We will focus on a strategy to solidify our position not only as a metaverse capital but also as a global digital hub,” said the province’s Governor Lee Cheol-woo.Offering a hybrid metaverse experienceTouted as the nation’s first scalable hybrid metaverse platform, Metaport utilizes Web3 technology to provide both web and app services. In particular, it leverages open APIs to integrate features such as login and avatars into one service, which allows users to enjoy metaverse content provided by local governments, public institutions, businesses, schools and more.Bridge to the futureThe platform also connects reality and the virtual realm with a virtual model of the Daegu-Gyeongbuk Integrated New Airport as the main space within the realm. The Daegu-Gyeongbuk Integrated New Airport is a joint military-civilian airport that is set to be built by 2030 in the Uiseong and Gunwi counties.Users can access MetaPort through a website without downloading a separate program. The mobile app is also available for Android smartphones on the Google Play Store.