Virtual Asset Usage Behavior Survey Results Released
With an increasing number of users entering the realm of virtual assets, countries worldwide are taking note of this trend. Last year, the Financial Supervisory Commission (FSC) announced a gradual enhancement in managing domestic cryptocurrency exchanges, alongside the drafting of a dedicated domestic virtual asset law expected to be introduced this year. Ahead of this law, to gauge behavioral patterns in Taiwan’s domestic virtual asset market and public views on future regulatory oversight, “CommonWealth Magazine” conducted the “Taiwan Virtual Asset Usage Behavior Survey” from May to June 2024.
This online survey targeted users who have invested in or held virtual assets for over six months and have accounts on two or more exchanges. The survey period ran from May 7th to June 11th, with a total of 1,080 valid responses collected.
The survey revealed that respondents prioritize “rigorous supervision” in preventing fraud and money laundering. Regarding asset allocation, a significant proportion currently favors placing virtual assets predominantly on international centralized exchanges. Respondents expressed a desire to avoid excessive restrictions, preserving public choice rights. They also hope the government will encourage international exchanges willing to comply with Taiwanese regulations to establish a presence, rather than imposing outright bans. This indicates that most people adopt a stance of “secure yet free” towards emerging virtual asset industries.
The survey yielded three main findings:
1. Entering a Growth Phase for Emerging Assets
Virtual assets have become a widely discussed and engaged investment method, expected to continue growing in the future. The survey shows increasing depth of usage, awareness, value recognition, and diversification in asset allocation among domestic virtual asset users, marking Taiwan’s transition from an introductory phase to an expansion stage.
– Depth of Usage:
– 66% of respondents have held virtual assets for over two years, showing substantial research and experience amidst major market events and recent market cycles.
– Among high-income respondents, 50% have over three years of investment experience.
– Professionals in ICT and media sectors show higher than average experience levels exceeding three years.
– Overall, 58% of respondents own five or more accounts, indicating deep involvement and diverse demands in virtual assets.
– Awareness and Value Recognition:
– Over 50% of respondents primarily focus on capital gains, while 53.4% support virtual assets due to their decentralized blockchain concept.
– This indicates user interest not only in short-term profits but also in understanding and supporting the core values of underlying technologies.
– Additionally, 50.3% of respondents express curiosity about and a desire to explore novel technological investment tools.
– Future Growth Potential:
– On average, virtual assets constitute approximately 45% of respondents’ total financial assets.
– Six out of ten respondents plan to increase their virtual asset allocations over the next three years, potentially raising the overall proportion to 54%.
– Only 26% of respondents plan to maintain their asset allocations, reflecting market expectations of increasing investment in virtual assets.
Virtual assets have moved beyond their initial adoption phase towards a more robust and mature growth stage.
2. Product Selection Emphasizes Security and Liquidity
In all financial transactions, whether traditional or involving emerging virtual assets, security, good user experience, and adequate liquidity are consistently top considerations for users.
– Security Priority:
– 66% of respondents prioritize “platform security for virtual assets” when selecting trading platforms, highlighting investors’ strong emphasis on asset security in this emerging market.
– Indispensable Liquidity:
– Following closely, 48% prioritize “depth of trading liquidity and price stability,” indicating investor expectations for relatively stable and reasonable trading prices, which major international exchanges provide.
– Localization vs. International Advantages:
– “Support for TWD deposits and withdrawals” (43%) is a major advantage for Taiwanese local exchanges.
– However, “platform international reputation and influence” (41%) also play a crucial role in investment decisions, with both factors closely contested.
– Trusted Platforms:
– According to the survey, internationally recognized centralized exchanges such as Binance, OKX (note: as of June 7, 2024, OKX has been declared by the FSC as operating securities/futures/investment trust/investment consulting businesses without approval and registration under the Companies Act; investors are advised against its services within Taiwan. See FSC announcement: https://3434.twsa.org.tw/dtl.php?id=196), and Taiwan’s local Maicoin are the top three platforms trusted by respondents for safeguarding user assets.
– Only 22% of respondents consider “completion of FSC anti-money laundering compliance statements” as an important factor, indicating a gap between regulatory policies and user perceptions and behaviors, warranting consideration in future regulatory frameworks.
– Conclusion:
– While convenience in TWD transactions is advantageous for domestic exchanges, it does not decisively influence investor asset allocations.
– Investors prioritize overall platform strength, including security, liquidity, product diversity, and international brand recognition.
3. Public Expectations for a Secure yet Free Investment Environment
In addition to virtual asset usage behaviors, the survey for the first time unveils public expectations for the investment environment: striking a balance between securing investment safety and maintaining market freedom. Overall, respondents prefer moderate to below-moderate government regulatory measures to provide a secure yet free investment environment. They also hold an open attitude towards the entry of international centralized exchanges into the domestic market.
– Emphasis on “Strict Supervision” in Fraud Prevention and Anti-Money Laundering:
– The public has high expectations for supervision in fraud prevention and anti-money laundering, advocating for “strict supervision.” In areas such as user asset custody measures, transaction fairness, and customer complaint handling, they expect “moderate supervision” to avoid overly restricting market dynamics.
– “Self-regulation by Operators” on Product Details:
– Regarding specific regulatory issues, the public believes matters such as leverage ratios, marketing strategies, and listing of new cryptocurrencies should primarily be self-regulated by operators, reflecting expectations for market mechanisms.
– “Open Competition” in Market Competitiveness:
– The survey shows public openness towards international exchanges, with 77.9% of respondents stating that overseas exchanges that have not completed Taiwan’s anti-money laundering compliance declarations should only undergo “appropriate supervision, cooperate with government anti-fraud and anti-money laundering efforts, and refrain from excessive restrictions, thereby preserving public choice rights.”
– Less than 1% of respondents believe such platforms should be fully blocked, highlighting public demands to maintain market openness.
Furthermore, an overwhelming 82.7% of respondents agree that the government should encourage international exchanges willing to comply with Taiwanese regulations and related policies to enter the Taiwanese market, reflecting public expectations for introducing high-quality international platforms.
In conclusion, the future investment in virtual assets is a long-term trend. Respondents expect regulatory agencies to adopt cautious yet open approaches. When formulating relevant policies, understanding users’ actual behaviors and expectations for the investment environment, adopting flexible regulatory approaches, and encouraging international exchanges willing to comply with government policies to enter the Taiwanese market will be crucial in driving industry development and enhancing Taiwan’s overall competitiveness in the virtual asset ecosystem.
