Hong Kong’s Cryptocurrency Sentiment Plummets Amid JPEX Exchange Scandal

Preliminary findings from a recent survey indicate that public opinion of cryptocurrencies in Hong Kong has significantly declined in the wake of the JPEX cryptocurrency exchange crisis. The purpose of the survey, which was commissioned by the business school at The Hong Kong University of Science and Technology, was to determine how the JPEX controversy has impacted public perceptions of virtual assets.

This large-scale study project began on September 28, around 11 days after the charges against JPEX surfaced. The results were compared to a survey that was carried out in April and May of the same year. Even though the survey period ends on October 20, the initial findings already show that opinions are changing in the area.

The study’s key findings show that 41% of participants are now reluctant to own virtual assets, a significant increase of 12 percentage points from the May survey. In addition, only 20% of respondents expressed interest in making bitcoin investments in the future, a five percentage point decline from the prior study. These figures highlight a noticeable drop in Hong Kong residents’ excitement for the cryptocurrency space.

Although it did not specifically mention JPEX in its report, the Hong Kong University of Science and Technology (HKUST) stated that the second poll was conducted in response to a reported financial scam using a cryptocurrency platform the month prior.

As per Professor Allen Huang, the associate dean of HKUST’s business school, the public’s perception of cryptocurrency investments has become more cautious due to the recent financial incident that has increased public awareness of the cryptocurrency space.

According to the HKUST business school, the survey’s objectives were to determine how Hong Kong people felt about investing in virtual assets while accounting for their goals for the future, their experiences in the past, and the need for legislative protections.

In related news, several of JPEX’s users expressed alarm when the troubled cryptocurrency exchange at the core of the incident unveiled an asset lock-up plan.

2,200 people aged 18 and above participated in the second poll, which was conducted between September 28 and October 5. The initial survey included 5,700 participants. The JPEX exchange is presently being investigated for possible involvement in a $166 million fraud scam. The investigation was made public by Hong Kong authorities after the scheme collapsed over a number of months.

As a reaction to the JPEX scandal, on October 5, the Securities and Futures Commission and the Hong Kong Police Force formed a special working group centered on cryptocurrencies. The group’s main goal is to deal with illegal activity in the cryptocurrency exchange industry.

The Hong Kong bitcoin community is concerned about the drop in public opinion regarding cryptocurrency investments, as indicated by the HKUST poll. Because of its generally lenient legal framework, the area has long been a major hub for bitcoin trading and investment.

According to analysts, investors’ trust in the business has been damaged by the JPEX affair, and as a result, they are now less inclined to trade cryptocurrency. This change in attitude might also have an impact on Hong Kong’s larger financial industry, which is now battling the need for stronger regulations to address these issues.

Both investors and authorities are still very interested in and concerned about how these shifting views will affect Hong Kong’s financial system overall and the cryptocurrency market in particular.