Public Attitude Towards Cryptocurrency in Hong Kong Takes a Hit After JPEX Scandal
A recent survey conducted by The Hong Kong University of Science and Technology’s business school reveals that public sentiment towards cryptocurrency in Hong Kong has declined following the JPEX crypto exchange scandal. The survey aimed to assess how the public’s attitudes towards virtual assets may have been affected by the scandal.
The survey, which began on September 28, just 11 days after the allegations against JPEX were made public, compared its findings to a similar survey conducted between April and May. While the survey is set to conclude on October 20, the preliminary results show that 41% of respondents would prefer not to hold virtual assets, an increase of 12 percentage points from the previous study.
Additionally, only 20% of respondents now express interest in holding virtual assets in the future, down five percentage points from before. These findings suggest that sentiment towards the cryptocurrency industry in Hong Kong may be souring.
HKUST Acknowledges Financial Fraud Incident
The Hong Kong University of Science and Technology (HKUST) acknowledged that the second survey was conducted “in the aftermath of an alleged financial fraud” involving a cryptocurrency platform. Although not explicitly mentioned, this incident refers to the JPEX scandal.
According to Professor Allen Huang, Associate Dean of HKUST’s business school, this recent financial incident has drawn more attention to the cryptocurrency industry and led to a more cautious investment approach. He emphasizes the need for educational initiatives to enhance public understanding and awareness of the risks and potential of this emerging field.
Survey Details
The survey conducted by HKUST’s business school aimed to gauge the attitudes and views of Hong Kong residents towards virtual asset investment based on their experiences, intentions, and regulatory safeguards. The first survey involved 5,700 participants aged 18 and above, while the second survey had 2,200 respondents between September 28 and October 5.
JPEX Scandal and Government Response
JPEX allegedly operated a $166 million fraud scheme, which was uncovered over several months before Hong Kong authorities publicly announced their investigation into the exchange. In response to the JPEX saga, the Hong Kong Police Force and the Securities and Futures Commission established a cryptocurrency-focused working group on October 5 to address illicit activities on exchanges.
Hot Take: Public Sentiment in Hong Kong Turns Negative After JPEX Scandal
The recent survey conducted by The Hong Kong University of Science and Technology’s business school indicates a decline in public sentiment towards cryptocurrency in Hong Kong following the JPEX crypto exchange scandal. The findings show an increased reluctance to hold virtual assets and a decreased interest in future investment in the cryptocurrency industry. This shift in attitude highlights the need for more educational initiatives to enhance public understanding of the risks and potentials associated with virtual assets. The JPEX scandal has drawn attention to the importance of regulatory safeguards and prompted government action to address illicit activities on exchanges.
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