A recent survey by Hong Kong’s Investor and Financial Education Council (IFEC) revealed only 47% of retail crypto investors are aware of the new virtual asset regulations enacted in June.
The legislation aimed to protect retail traders by requiring exchanges to obtain licenses for operation. However, many Hong Kongers seem unaware of the regime despite surging crypto adoption.
Per the IFEC, nearly 25% of Hong Kong adults aged 18–29 invested in crypto last year—triple the demographic average. But stocks remained the preferred investment overall.
Most respondents saw crypto as a way to make short-term profits
Most respondents saw crypto as a way to make short-term profits versus long-term wealth. This suggests many dabble without fully understanding new regulations or risks.
The results prompted warnings from officials for investors to research products and align their choices with their goals and risk tolerance.
HK legalized retail crypto trading in June, though not without issues like the $166 million JPEX Ponzi scheme unraveling soon after.
More education around the new regulatory guardrails appears to be needed to match the rising retail appetite. Stronger awareness can head off issues like excessive speculation and scams.
As Hong Kong further builds out its digital asset framework, ensuring citizens understand the associated protections will be key. The survey highlights gaps authorities need to address to enable responsible adoption.