Hong Kong JPEX cryptocurrency scandal is a chance for residents to ‘learn more about fintech, improve vigilance over unlicensed platforms’

Hong Kong’s growing scandal involving cryptocurrency exchange JPEX serves as an opportunity for residents to learn more about fintech and improve their vigilance over unlicensed platforms, according to a top executive at the city’s investor education body.

Dora Li Yuen-chow, general manager of the Investor and Financial Education Council, on Sunday said it would step up its work promoting better knowledge of investments among the public, who should thoroughly research whether virtual asset trading platforms were licensed before using them.

“Investors should take this opportunity to learn more about fintech and related products as the development of virtual assets has just taken off, and there may be more of these products flooding the market,” she said in a televised interview.

Li said investors generally had strong knowledge of financial management and investments, but their “behaviour and attitude” could sometimes lead to problems.

The council is a public organisation that is committed to promoting investor and financial education. It is a subsidiary of the Securities and Futures Commission (SFC).

“This incident has led to a lot of public discussion and the council would like to take this opportunity to carry out more investor education to let the public understand more about fintech,” Li said, referring to the city’s largest alleged financial fraud centred on accusations against cryptocurrency firm JPEX.

Suspected losses in the case have reached HK$1.5 billion (US$191.9 million), with police having received 2,417 complaints against the trading platform as of Friday.