Preliminary findings from a recent survey conducted by the Hong Kong University of Science and Technology’s Business School reveal a decline in public sentiment towards cryptocurrencies in Hong Kong following the JPEX cryptocurrency exchange scandal. The survey, initiated on September 28. aimed to gauge the impact of the JPEX scandal on public attitudes toward virtual assets by comparing its findings with similar surveys from April and May.
Though the survey period concluded on October 20. initial results indicate that 41% of respondents are now unwilling to hold virtual assets, marking a 12-percentage-point increase from the May study. Conversely, only 20% of respondents anticipate holding virtual assets in the future, reflecting a 5-percentage-point decrease from the earlier survey. These shifts suggest a deteriorating sentiment in Hong Kong towards the cryptocurrency sector.
While the survey did not explicitly mention JPEX, it acknowledged the investigation was launched in the wake of "alleged financial fraud" at a cryptocurrency platform. Professor Huang Ailun, deputy dean of the HKUST Business School, noted that recent financial events have increased public scrutiny of the cryptocurrency industry, leading to more conservative investment preferences. He emphasized the importance of education initiatives to enhance public understanding and awareness of the risks and potential in the emerging field of virtual assets.
The survey, which was conducted in two phases involving 5.700 people aged 18 and over in the first round and 2.200 people from September 28 to October 5 in the second round, aims to gather insights on Hong Kong residents' attitudes toward virtual asset investments based on their experiences, intentions, and the need for regulatory safeguards. The JPEX scandal involved allegations of a $166 million fraud scheme that was exposed several months before Hong Kong authorities officially launched an investigation into the exchange. Following this incident, the Hong Kong Police Force and the Securities and Futures Commission established a cryptocurrency-focused working group on October 5 to address illegal activities within cryptocurrency exchanges.
