Hong Kong Investors Lose Faith In Crypto After JPEX Scandal: Survey

A survey conducted by The Hong Kong University of Science and Technology's School of Business and Management shows a notable uptick in skepticism toward crypto investments among the Hong Kong populace.

This shift in public sentiment is noteworthy as the global discourse around digital assets continues to evolve. Benzinga's Future of Digital Assets conference on Nov. 14 aims to unravel the complexities and potentials of the digital asset sector, resonating with the concerns and attitudes reflected in the survey.

According to the survey:

• 41% of respondents now express disinterest in crypto
• There has been a 12% increase in individuals preferring to steer clear of virtual, or digital, assets.
• Future crypto investment interest dipped 5%, now stands at 20%.

The JPEX scandal, which erupted when the platform was embroiled in alleged financial fraud, is likely to blame.

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The survey encompassed a diverse range of topics related to VA investment, such as investment experience, intentions, and regulatory safeguards. The first phase of the survey, conducted between April 24 and May 23, garnered responses from 5,700 individuals.

Following the JPEX incident, a second phase was rolled out on Sep. 28 to gauge the altered public sentiment. About 2,200 individuals offered feedback as of Oct. 5.

The findings revealed that although a significant 84% of respondents were aware of virtual assets, only 27% currently hold or have previously held any.

Bitcoin BTC/USD emerged as the most popular virtual asset, with 73% of respondents expressing interest, trailed by NFTs (24%) and Ether ETH/USD (21%).

The survey also addressed the regulatory landscape. There was a 15% surge in awareness regarding Hong Kong's regulatory requisites for virtual-asset service providers, post-incident.

Also, over half of the respondents incorrectly believed that virtual assets traded on Hong Kong-licensed exchanges are regulator-approved.

University representatives hope the survey findings provide industry stakeholders with more perspective on developing a robust virtual asset sector in Hong Kong.

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