Apac institutional investors call for greater regulatory clarity on digital assets: report
It says that scale and regulation in this space across regions need work
Nearly two-thirds of Asia-Pacific institutional investors have called for enhanced regulatory clarity in the digital assets sector, according to a recent State Street survey of 300 asset managers, asset owners and wealth managers. The survey reveals that appropriate regulatory framework is the top priority for digital asset providers, with 46% citing lack of regulatory clarity in target jurisdictions as the most significant barrier to adoption.
Cybersecurity and financial strength were also deemed crucial, with 54% and 47% of respondents respectively. Global investors are growing bullish on digital assets, yet emphasize trust, security and market infrastructure as the market matures. More than half of the respondents anticipate substantial changes in investment operations within the next three years due to digital assets.
Despite this, most institutions aspire for regulation of digital assets and infrastructure to mirror existing market structures, rather than introducing a completely new financial system. The survey further indicates that 63% of institutions already manage or distribute digital assets, with tokenised asset settlement and bank-issued US dollar stablecoins being the most preferred forms of digital cash.
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