Hong Kong University of Science and Technology (HKUST) Business School recently released its latest public opinion survey on virtual assets and tokenized currencies, revealing that approximately 25% of respondents expressed interest in holding virtual assets in the future. This marks a 6-percentage-point increase compared to September 2023, following an alleged fraud incident involving a cryptocurrency platform.
JPEX Fraud Incident Impact Fades
The research team noted that public interest in holding virtual assets has rebounded to levels similar to the first survey, indicating that the negative impact of the "JPEX" incident has diminished. Across all three surveys, no less than 40% of respondents remained undecided about whether they would hold virtual assets in the future.
Regulated Platforms Perceived as Safer
Survey results showed that respondents' willingness to use cryptocurrency exchanges significantly increased if the platforms were regulated. The proportion of respondents who felt deposits on regulated platforms were safer was 20% higher than for unregulated platforms.
Bitcoin consistently outperformed other virtual assets in popularity across all three surveys, with 81% of respondents interested in holding it—a 7-percentage-point increase from the first survey. Conversely, interest in non-fungible tokens (NFTs) declined by 11 percentage points, reflecting a shift in investor preference away from speculative digital collectibles.
Majority Support Equal Protection for Tokenized Deposits
The survey also explored public awareness and opinions on tokenized currencies, including regulatory and application perspectives. Key findings include:
- Low Awareness: Many respondents lacked familiarity with central bank digital currencies (CBDCs), e-HKD, stablecoins, and tokenized deposits (72%, 65%, 61%, and 81%, respectively).
- Regulatory Support: About 34% supported allowing private-sector issuance of stablecoins or tokenized deposits under appropriate regulation.
- Equal Protection Demand: 52% agreed tokenized deposits should have the same legal status and safeguards as traditional bank deposits.
Professor Kar Yan Tam, Chair Professor of Information Systems at HKUST, emphasized Hong Kong's proactive efforts to balance regulation and innovation in the virtual asset sector. He stated the survey provides critical insights for building a robust virtual asset industry in Hong Kong.
Methodology
Conducted over three weeks in November 2024, the survey polled 5,863 Hong Kong adult residents. Previous surveys were carried out before (April–May 2023) and shortly after (September–October 2023) the alleged cryptocurrency platform fraud incident.
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FAQs
1. Why has interest in virtual assets rebounded in Hong Kong?
Public confidence has recovered as the impact of past fraud incidents faded, and regulatory clarity improved.
2. What makes Bitcoin more popular than other virtual assets?
Bitcoin's established reputation, liquidity, and perceived stability attract both new and experienced investors.
3. How do regulated platforms enhance user trust?
Regulation ensures transparency, security measures, and legal recourse, making users feel their deposits are safer.
4. What are tokenized deposits?
They are digital representations of traditional deposits on blockchain networks, offering similar utility with added programmability.
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5. Why has NFT interest declined?
Market volatility and shifting investor focus toward utility-driven assets have reduced speculative demand for NFTs.
6. What’s next for Hong Kong’s virtual asset industry?
Expect tighter regulations paired with innovation-friendly policies to foster sustainable growth and global competitiveness.