JPEX Scandal Undermines Trust in Crypto Among Hong Kongers, Survey Reveals
Attitudes toward crypto in Hong Kong have taken a hit, as a new survey reveals a growing aversion to virtual assets in the aftermath of the JPEX scandal.
This shift in sentiment poses significant challenges to Hong Kong's aspirations to establish itself as a global hub for the cryptocurrency industry.
The survey conducted by the School of Business and Management at the Hong Kong University of Science and Technology (HKUST) highlights a significant decline in trust and interest in cryptocurrencies among Hong Kong residents, South China Morning Post reported.
From September to October, 41% of respondents expressed a preference for not holding virtual assets, marking a 12% increase from earlier this year (April to May).
In the wake of the JPEX scandal, only 20% of those surveyed in the current month indicated a desire to hold crypto in the future, representing a 5% drop from earlier this year.
This decline in enthusiasm can be attributed to the fallout from the allegedly fraudulent platform JPEX.
The JPEX cryptocurrency platform was at the center of a financial scandal amounting to HK$1.57 billion (US$200.7 million) and involved thousands of victims.
This scandal led to one of the most high-profile enforcement actions in Hong Kong's virtual asset sector, resulting in the arrest of 28 individuals over the past month. The masterminds behind the scheme remain at large.
JPEX had enticed numerous local retail investors through mass media advertisements, promising exceptionally high yields of up to 20%. However, the platform abruptly halted customer withdrawals last month following a public warning issued by Hong Kong's securities watchdog, citing "suspicious practices." As a result, some retail customers lost their life savings.
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