Hong Kong’s ambition to become a global hub for digital assets is unquestionable. The government’s efforts to foster a conducive ecosystem for digital assets have been made to remain competitive in the international financial stage. However, the recent JPEX scandal, a Hong Kong-based cryptocurrency exchange, has stirred the waters of the developing cryptocurrency sector.

Mid-September saw JPEX introduce sky-high withdrawal fees, blocking users from accessing their funds, resulting in a monetary fallout estimated to surpass HK$1 billion (US$127 million). The incident has triggered a police investigation and damaged the public’s perception of cryptocurrency.