JPEX scandal erodes public trust in cryptocurrencies, sets back Hong Kong’s virtual asset hub ambitions: analysts
The implosion of JPEX is likely to make the public more cautious about investing in cryptocurrencies, experts saySentiment may improve over the long run, as Hong Kong’s legal clampdown on JPEX shores up trust in licensed platformsBlockchainXinmei ShenPublished: 7:00am, 25 Sep, 2023Why you can trust SCMP
The JPEX scandal, which is suspected to have ensnared at least 2,305 victims involving about HK$1.43 billion (US$182 million) of investments, has dealt a heavy blow to public trust in cryptocurrencies, casting a shadow over Hong Kong’s ambitions to become a global virtual asset hub.
The implosion of JPEX, which could turn out to be the largest financial fraud in the city’s history, has rung alarm bells among local retail investors, creating near-term challenges for virtual asset companies banking on the government’s push to expand the sector, according to industry players and analysts.
The cryptocurrency scandal gripping Hong Kong
The cryptocurrency scandal gripping Hong Kong“At a time when people still don’t completely understand what Web3 is, the JPEX case has created a negative impression for people in Hong Kong on digital assets and the broader Web3 industry,” said Cyrus Ip, a crypto venture investor and chief business officer at artificial intelligence start-up DreamWld Technology.