Under today's digital trend, cryptocurrency is rapidly emerging as an emerging form of finance. A recent VISA survey showed that more than 30% of Hong Kong citizens hold or use cryptocurrencies, a number second only to the United States. This data has drawn attention to Hong Kong’s cryptocurrency market. This article will delve into the current status of cryptocurrency in Hong Kong, analyze the reasons behind it, and look forward to future development trends.

In Hong Kong, an international financial center, the popularity of cryptocurrencies is self-evident. Although Hong Kong’s cryptocurrency penetration rate is slightly lower than that of the United States, it is still enough to attract people’s attention. What phenomena and trends are hidden behind this VISA survey result?

Popularity of Cryptocurrency in Hong Kong

First, let’s understand why cryptocurrencies are so popular in Hong Kong. With the rapid development of financial technology, people's acceptance of digital currencies is gradually increasing. In a financially active place like Hong Kong, the convenience and efficiency of cryptocurrency have made it the first choice for many people. For example, some young people like to use cryptocurrency for cross-border payments because it is not affected by exchange rate fluctuations, has fast transfer speed and low handling fees. This convenience is undoubtedly one of the important reasons for the popularity of cryptocurrencies.

Risks and Challenges of the Cryptocurrency Market

However, with the popularity of the cryptocurrency market, there are also some risks and challenges. Wild price swings in cryptocurrencies such as Bitcoin have kept many investors away. In Hong Kong, regulatory policies are relatively loose, which also provides opportunities for some criminals. In recent years, some cryptocurrency trading platforms have been suspected of fraud, causing huge losses to investors, which has also shaken people's trust in cryptocurrency to a certain extent. Therefore, the importance of supervision has become increasingly prominent, and how to effectively supervise while ensuring market vitality has become a top priority.

Future Development Trends of Cryptocurrency

Despite some risks and challenges, cryptocurrency still has huge potential for development as an innovative form of finance. In the future, as blockchain technology continues to mature and be applied, the cryptocurrency market will usher in more opportunities and challenges. For example, some large financial institutions have begun to research and try to issue their own digital currencies, which will further promote the popularity and development of cryptocurrency in Hong Kong. At the same time, governments and regulatory agencies will also increase supervision of the cryptocurrency market to ensure market order and the protection of investor rights.

Conclusion

In general, although the popularity of cryptocurrency in Hong Kong is not as high as that in the United States, it has also shown a vigorous development trend. With the continuous advancement of financial technology and the continuous optimization of the market environment, I believe that the status of cryptocurrency in Hong Kong will become increasingly important. However, investors still need to be cautious when participating in cryptocurrency transactions and treat market fluctuations rationally to avoid unnecessary losses. It is hoped that the Hong Kong cryptocurrency market will develop healthily and orderly in the future, injecting new vitality into financial innovation and economic development.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

VISA, the global leader in credit card payments, released a report "Cryptocurrency Phenomenon: Consumer Attitudes and Usage" on the 9th. The survey results show that as many as 91% of Hong Kong people in Hong Kong are aware of cryptocurrency. Among this group of Hong Kong people, about 31% already hold or use cryptocurrency; 18% of Hong Kong respondents are cryptocurrency users. Active holders, 13% are passive holders; this proportion ranks second among the 8 markets surveyed, second only to the United States.

Note: Active holders are defined as consumers who use cryptocurrency to send or receive, purchase goods, or receive at least 1 payment; passive holders are defined as those who purchase cryptocurrency as an investment but have not transferred it. , and there are no consumers using cryptocurrencies to transact.

Additionally, a majority of respondents (63%) said their use of cryptocurrencies has grown over the past year. As for the reasons that inspire greater use of cryptocurrencies, the survey shows that they are related to wanting to participate in the future of finance (43%) and diversifying investment portfolios (32%).

This report was conducted by VISA from August 25 to September 13. A total of 6,341 respondents from 8 markets were interviewed, including 3 emerging markets including Argentina, Brazil, and South Africa, as well as Australia, Germany, and Hong Kong. , the United Kingdom, the United States and other 5 developed markets.

Nearly 1/3 of global respondents have been exposed to cryptocurrencies

Overall, nearly one-third of the respondents in the eight markets surveyed hold or have used cryptocurrencies; as cryptocurrencies become more popular, the demand for using them in transactions is also increasing, with approximately 81% of cryptocurrency owners expressed interest in a cryptocurrency-related card.

Broken down, among these 8 markets:

21% are active holders

11% are passive holders

21% expressed curiosity

11% expressed doubts, and another 37% had no knowledge or indifference about cryptocurrency.

Notably, VISA noted that nearly two-thirds of cryptocurrency users are male: Nearly two-thirds of consumers who transact with cryptocurrencies are male (65% are active holders), while the vast majority The consumers who are not exposed to cryptocurrencies at all are women (57% not exposed). The exception is Hong Kong, where there is little difference in participation levels between the sexes.

Hong Kong people want to participate in the future of finance

In response to the survey results, Hong Kong's South China Morning Post reported that the main reason why Hong Kong people are keen on investing in cryptocurrency is that they want to participate in future financial methods and diversify their investment portfolios.

Maaike, Managing Director of VISA Hong Kong and Macau Region
Steinebach said: As consumers rethink the way they invest, spend and save, cryptocurrencies are gaining interest not only as a tradable asset but also as a potential payment medium. Cryptocurrency applications are emerging from growing awareness.

Alice, a Hong Konger in her 20s who works at a cryptocurrency company
Lau said: I have tried investing in stocks and the stock market, but cryptocurrency is much more exciting. Cryptocurrencies are considered volatile and risky, but I follow the market closely and don't worry about my investments.

According to previous reports, Leung Fengyi, deputy chief executive of the Hong Kong Securities and Futures Commission, attended the forum on the 3rd and stated that the Securities and Futures Commission and the Financial Supervisory Commission are in close contact to review the relevant regulatory framework for cryptocurrency transactions, including exploring whether to accept cryptocurrency-related ETFs and allow retail investors Possibility of investing in cryptocurrencies through online brokers.

Currently, Hong Kong’s regulatory system favors providers of cryptocurrency-related services who need to apply for licenses and can only provide services to professional investors. Professional investors are defined as individuals with an investment portfolio exceeding HK$8 million (US$1 million), or companies with total assets exceeding US$5 million.