Results of the Virtual Asset Usage Survey Released 76 of Taiwanese Use Overseas Exchanges Which Three Major Exchanges are the Most Trusted

Results of the Virtual Asset Usage Behavior Survey Released
With an increasing number of users entering the realm of virtual assets, countries around the world are beginning to pay more attention to this development. Last year, the Financial Supervisory Commission announced plans to gradually strengthen the regulation of domestic cryptocurrency exchanges and is closely studying the establishment of a domestic virtual asset law, with a draft expected to be introduced this year. Before the law is enacted, in order to understand the behavior patterns in the domestic virtual asset market and the opinions of Taiwanese people on future market regulation, “CommonWealth Magazine” conducted the “Taiwan Virtual Asset Usage Behavior Survey” from May to June 2024, hoping to gain insights into the actual behavior and thoughts of virtual asset users.
The survey was conducted using an online questionnaire, targeting users who have been “investing or holding virtual assets for more than 6 months” and have “more than 2 exchange accounts.” The survey took place from May 7 to June 11, 2024, with a total of 1,080 valid responses collected.
The survey found that when it comes to regulation, respondents believe that the most important aspect requiring “strict supervision” is fraud prevention and anti-money laundering measures. In terms of asset allocation, currently, the majority of virtual assets are placed on international centralized exchanges. Respondents hope to avoid excessive restrictions, preserve the public’s right to choose, and also expect the government to encourage international exchanges willing to comply with Taiwanese regulations to establish a presence in Taiwan, rather than imposing a complete ban. This shows that facing the emerging industry of virtual assets, most people hold a “safe but free” attitude.
The survey uncovered three main findings, as detailed below:
1. Entering a Growth Phase of Emerging Assets
Virtual assets have become one of the widely followed and participated investment methods and are expected to continue growing in the future. In this survey, it was observed that domestic virtual asset users are showing an increasing trend in terms of usage depth, awareness and value identification, and asset allocation. This indicates that virtual assets in Taiwan are transitioning from an introductory phase to an expansion phase.
– Usage Depth: In this survey, 66% of respondents have held virtual assets for over two years, experiencing major market events and recent market bull and bear cycles, indicating substantial research and experience with the industry and platforms. Among respondents with an annual income of over a million, half have more than 3 years of investment experience. Those working in information technology and media have a higher proportion of experience exceeding 3 years. Overall, 58% of respondents have more than 5 accounts, showing deep participation and diversified demand for virtual assets.
– Awareness and Value Identification: Over half of the respondents (58.1%) prioritize capital gains, while 53.4% hold virtual assets because they support the decentralized concept of blockchain, demonstrating that users not only focus on short-term profits but also understand and support the core values of the underlying technology. Additionally, 50.3% of respondents express curiosity about this emerging technology and wish to try novel technological investment tools.
– Future Growth Potential: Virtual assets still have significant growth potential in the future. On average, virtual assets account for approximately 45% of the total financial assets of respondents, and six out of ten respondents plan to increase their virtual asset allocation in the next three years, raising the overall proportion from 45% to 54%. Only about 26% of respondents plan to maintain their asset allocation unchanged, reflecting market expectations for increased investment in virtual assets.
Virtual assets have likely passed the initial introductory phase and are moving towards a more robust and mature growth stage.
2. Product Selection Prioritizes Security and Liquidity
In all financial transaction behaviors, whether traditional finance or emerging virtual assets, security, good product experience, and sufficient liquidity are always among the top considerations for users.
The survey found that a significant 76% of respondents choose to primarily allocate their assets on international centralized exchanges, with nearly 60% of respondents placing over 70% of the total value of their virtual assets on these platforms. Only 9% opt for domestic platforms as their main allocation, and the total value placed is mostly below 50%.
The reasons for this preference may be attributed to the following factors:
– Security First: 66% of respondents consider “platform security for virtual assets” as the primary factor when selecting a virtual asset trading platform. This highlights the high importance investors place on asset security in this emerging investment market.
– Indispensable Liquidity: Following closely is the importance of “the depth of trading liquidity and price stability” (48%), reflecting investors’ desire for relatively stable and reasonable trading prices, which are advantages of large international exchanges.
– Localization vs. Internationalization: “Having Taiwanese currency deposit and withdrawal services” (43%) is the third most important consideration in the survey, becoming an advantage for Taiwan’s local exchanges. However, “the platform’s international reputation and influence” also play a critical role in investment decisions (41%), with only a marginal difference between the two factors.
It is worth noting that in terms of protecting user rights and safeguarding user assets, the top three platforms that respondents trust the most in this survey are the international centralized exchanges Binance, OKX, and Taiwan’s local exchange Maicoin. Additionally, only 22% of respondents consider “completion of the Financial Supervisory Commission’s anti-money laundering compliance declaration” as an important factor to consider, indicating a certain gap between regulatory policies and user perceptions and behaviors. It suggests that when formulating regulatory frameworks in the future, considerations should be given to understanding why respondents are willing to bear significant risks, warranting further research.
In summary, although domestic exchanges offer convenience in terms of Taiwanese currency deposit and withdrawal, they have not become the decisive factor in asset allocation for investors. Investors value the overall strength of platforms, including security, liquidity, product diversity, and international brand recognition.
3. People Expect a Secure yet Free Investment Environment
In addition to virtual asset usage behavior, this survey also revealed people’s expectations for the investment environment: they hope to strike a balance between safeguarding investment security and preserving market freedom. In general, respondents wish for government supervision to be moderate or less, providing a secure yet free investment environment, while also maintaining an open attitude towards international centralized exchanges entering the domestic market.
– Fraud Prevention and Anti-Money Laundering Should Be “Strictly Supervised”: People have high expectations for regulation in terms of fraud prevention and anti-money laundering, believing that “strict supervision” should be implemented. When it comes to asset custody measures, trading fairness, and customer service complaint handling, they expect “moderate supervision” to avoid excessive restrictions on market vitality.
– Product Details Should Be “Self-Regulated by Operators”: In terms of specific regulatory matters, people believe that issues like leverage multiples, marketing strategies, and listing new currencies should mainly be self-regulated by operators, reflecting their expectations for market mechanisms.
– Market Competition Should Be “Open and Free”: The survey shows that people are open to international exchanges, with a high 77.9% of respondents stating that non-Taiwanese exchanges that have not completed the Taiwanese anti-money laundering compliance declaration should only undergo “appropriate regulation, cooperate with the government in anti-fraud and anti-money laundering efforts, and not impose too many restrictions in other areas, preserving the public’s right to choose.” Less than 1% of respondents believe such platforms should be completely blocked, highlighting the public’s desire to maintain market openness.
Furthermore, a noteworthy 82.7% of respondents agree that the government should encourage international exchanges willing to comply with Taiwanese regulations and policies to enter the Taiwanese market, showing people’s expectations for introducing high-quality international platforms.
Through this survey, it is evident that investing in virtual assets is a long-term trend for the future, and respondents have cautious yet open expectations for the relevant regulatory agencies. When formulating related policies, the ability to understand the actual behavior of users and their expectations for the investment environment, adopt flexible regulatory approaches, and encourage international exchanges willing to comply with government policies to enter the Taiwanese market, will be crucial in driving industry development and enhancing the overall competitiveness of Taiwan’s virtual asset ecosystem.