Hong Kong’s cryptocurrency executives are commending the government for its approach to regulating the virtual asset sector and are calling for increased public education in light of the recent fraud involving cryptocurrency platform JPEX. The executives, including Animoca Brands co-founder Yat Siu and Gary Liu, former CEO of the South China Morning Post, praised the government for developing clear and consistent regulations to govern the digital assets economy. They expressed their support for the government’s swift enforcement actions towards firms that violate regulations.
The JPEX scandal, which has resulted in HK$1.5 billion in losses and led to 27 arrests, has severely damaged public trust in the industry and undermined Hong Kong’s efforts to become a global cryptocurrency and fintech hub. In response to the scandal, the Securities and Futures Commission (SFC) has published a list of cryptocurrency companies that have applied for licenses and has promised to improve efforts to educate the public about virtual assets.
The cryptocurrency executives are calling for the SFC to work with the industry to educate the public about the risks and fraudulent schemes associated with blockchain. They recommend providing realistic examples of scams, similar to existing measures to educate the public about telephone frauds. The Hong Kong Licensed Virtual Asset Association, a new organization launched in May, also aims to raise public awareness of the opportunities and risks of virtual assets.
Overall, the cryptocurrency executives are applauding the government’s commitment to regulating the virtual asset sector and are pushing for greater public education to restore trust and promote responsible trading in the industry.