Hong Kong residents plan to purchase cryptocurrencies in light of the upcoming economic crisis

Hong Kong residents plan to purchase cryptocurrencies in light of the upcoming economic crisis

According to a survey conducted by the Hong Kong blockchain Association (HKBA), almost half of respondents believe that Hong Kong’s economy, and world economy as a whole, next year will deteriorate.

Approximately 23% of the participants said they plan to invest in crypto-currencies for hedging currency risks during the potential financial crisis to deal with economic downturns.

HKBA pointed out that this poll reflects the desire of the average Hong Kong citizen to seek more diversified investment channels, to support the growth of their capital. Because of the escalating trade war between China and the United States, 46% of Hong Kong residents believe that the economic crisis will happen in the near future.

According to respondents, this situation has a negative impact on the stock markets of China and the United States. In these conditions, the HKBA said that the virtual currency can be a great investment tool for getting good profits.

Cryptocurrency market in recent years is growing rapidly, which is another positive factor influencing the opinion of investors. HKBA also noted that the younger generation relates to cryptocurrency are much more loyal.

According to Yahoo Finance, about 60% of respondents require a license and a clearer regulation of cryptocurrency trading platforms. Residents believe that Hong Kong should follow the example of the United States, Japan and Singapore to create a systematic fundamental regulatory framework for cryptocurrency regulation.

The Hong Kong government considers the development of Blockchain technology issue high priority, and the initial range of coins (ICO) — an effective model to raise funds. However, ICO or cryptocurrency trade is always associated with cyber crime. High investment income can instantly turn into catastrophic losses, and many investors aren’t ready.

Financial authorities emphasize that they will not interfere in the activities of the blockchain-companies and to the ICO while they are acting in accordance with laws and regulations.

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