AsianInvestor’s recent coverage of crypto investing has focused on investors' own concerns about the potential risks. Regulators and rating agencies have also been expressing their opinions on how rule-making should proceed.
It seems likely that investors will continue to face loss and uncertainty in the crypto markets. Meanwhile, allegations of fraud and mis-selling are adding to the negative sentiment.
It's an immature market and investors need to exercise caution. Nevertheless, the $40 billion collapse of a so-called stable currency has investors in the region questioning the stability of the crypto market.
According to the report, institutional investors should look for exposure to blockchain technology and its applications, since cryptocurrencies are neither currency nor precious metal substitute.
Regulation will play a big role in the direction that digital assets will take as many digital exchanges continue to operate in a grey area in many territories in Asia, investors and industry players say.
Evergrande not the first debt debacle in China, but its $305 billion debt, if unpaid, will have a ripple effect on the economy; ESG-friendly crypto products becoming hot commodities for institutional investors; GIC sees no systemic risk in Evergrande crisis, but Soros Fund presses pause on China; Which assets will perform under stagflation?; Family offices taking ESG into their own hands as regulators play catch up; and more.
Following China’s cryptocurrency ban, experts believe that Singapore is poised to take on a more prominent role in Asia’s digital assets space. Meanwhile, Hong Kong remains attractive for institutional investors.
As regulators globally step up their scrutiny of the cryptocurrency market, how will it evolve over the coming year? Six investment specialists give their takes.