Hong Kong's Trust in Cryptocurrency Plummets Amid JPEX Scandal, HKUST Survey Reveals
Summary:
The reputation of digital currency in Hong Kong has been impacted by the JPEX crypto exchange scandal, as shown by a study conducted by the Hong Kong University of Science and Technology's School of Business. Initial findings from the ongoing survey reveal a drop in public interest and trust in virtual asset investment. The recent financial scandal has led to an increase in scrutiny of the crypto industry, resulting in a more conservative investment outlook. The study also emphasises the need for further educational initiatives to build public awareness about this sector.
The reputability of digital currency in Hong Kong has been tarnished following the disgraceful scandal involving JPEX crypto exchange, as initial results from a new investigation suggest. The probe, headed by The Hong Kong University of Science and Technology's School of Business, was initiated to evaluate how the scandal surrounding JPEX may have affected public perception of digital assets. The investigation commenced on the 28th of September, roughly 11 days after the accusations against JPEX were publicly disclosed, and its results were judged alongside a related investigation carried out between April and May. While the investigation is set to conclude on the 20th of October, preliminary findings reveal a 12 percentage point rise to 41% in respondents who would rather avoid digital asset ownership. Only 20% of participants expressed hope to possess digital assets in the coming future, reflecting a five percentage point drop from the previous survey — an additional indicator of a potentially worsening opinion of Hong Kong residents toward the crypto sector.
The recent debacle involving JPEX, a Hong Kong-based crypto exchange, has delivered an unexpected blow to the crypto community. According to a new survey, it highlights a plunging level of trust within the domain of digital assets.
After the speculated financial fraud involving a crypto platform in the previous month, HKUST's second survey was acknowledged without explicitly mentioning JPEX in its document. Associate Dean of HKUST’s business school, Allen Huang suggested that the recent financial disturbance has triggered heightened public scrutiny toward the crypto sector, creating an emergence of a "more conservative investment desire" as of late. He expounded, "To enhance public cognizance and understanding of the threats and opportunities of this incipient domain, as digital assets increasingly become part of the digital economy, there is a dire need for more educational initiatives."
HKUST’s business school elucidated that the purpose of the survey was to assess the attitudes and perspectives of Hong Kong citizens on digital asset investment, based on their experiences, intentions and protective regulations.
A related story - JPEX crypto exchange rolls out asset locking plan, provoking distress among certain users. The initial survey had 5,700 participants, all above 18, while the second survey between Sept. 28 and Oct. 5 incorporated 2,200 participants. It is alleged that JPEX orchestrated a fraudulent scheme worth $166 million that gradually unraveled over many months before the Hong Kong authorities officially announced their investigation into the exchange.
Given the JPEX incident, the Hong Kong Police Force and the Securities and Futures Commission launched a cryptocurrency-targeted task force on the 5th of October to tackle illegal exchanges.
Magazine: How to safeguard your crypto in an unpredictable market — Bitcoin veterans and specialists offer their insights.
Published At
10/18/2023 4:25:27 AM
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