A recent survey conducted by The Hong Kong University of Science and Technology’s business school has revealed a significant shift in public sentiment toward cryptocurrencies following the JPEX crypto exchange scandal. The survey, launched shortly after the allegations against JPEX were made public, has shown that 41% of respondents now prefer not to hold virtual assets, marking a 12 percentage point increase from a similar study conducted in May. This suggests a growing apprehension among Hong Kong residents regarding the cryptocurrency industry.
In the wake of the JPEX scandal, the survey found that only 20% of respondents expressed a desire to hold virtual assets in the future, down by five percentage points from the previous survey. These findings suggest that the incident has cast a shadow of doubt over the cryptocurrency market, leading to a decline in the public’s enthusiasm for digital assets.
JPEX, a cryptocurrency exchange, was allegedly involved in a $166 million fraud scheme that unraveled over several months. Hong Kong authorities initiated an investigation into the exchange’s activities, which subsequently led to a decline in public trust in the cryptocurrency industry. While the Hong Kong University of Science and Technology’s business school did not directly reference JPEX in its report, the timing of the survey coincided with the aftermath of the alleged financial fraud.
Hong Kong ramps up crypto oversight after JPEX shock
Professor Allen Huang, Associate Dean of HKUST’s business school, noted that the recent financial incident had heightened public awareness of the cryptocurrency industry. This increased attention has resulted in a “more conservative investment appetite” among the public.
Professor Huang emphasized the need for educational initiatives to enhance understanding and awareness of both the risks and potential benefits associated with cryptocurrencies. As virtual assets continue to integrate into the digital economy, such initiatives may play a pivotal role in rebuilding trust within the community.
The survey aimed to gauge the attitudes and views of Hong Kong residents regarding virtual asset investments based on their experiences, intentions, and regulatory safeguards. A total of 5,700 individuals aged 18 and above participated in the first survey, while the second survey involved 2,200 respondents and was conducted between September 28 and October 5th, 2023.
In response to the JPEX scandal, the Hong Kong Police Force and the Securities and Futures Commission established a cryptocurrency-focused working group on October 5th, 2023, with the goal of addressing illicit activities on cryptocurrency exchanges. This move underscores the government’s commitment to maintaining the integrity of the financial sector and protecting investors in the cryptocurrency market.
