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Hong Kongs cryptocurrency executives are applauding the governments approach to regulating the virtual asset sector and are pushing for greater public education, as the city continues to deal with the fallout of an alleged fraud involving cryptocurrency platform JPEX that has resulted in HK$1.5 billion in losses.The Hong Kong government has taken the correct approach in its commitment to the future growth of Web3 by developing clear and consistent regulation to govern the digital assets economy, 10 cryptocurrency industry executives, including Animoca Brands co-founder Yat Siu, said in a joint statement published on Thursday.

They have taken notice of the situation at JPEX, and wish to express their unambiguous support for the governments strict and swift enforcement actions towards firms that violate the citys regulations, the letter reads.

Hong Kong cryptocurrency trading platform JPEX has in recent years attracted a large number of retail investors by putting up advertisements in the citys busiest locations, claiming to be a licensed exchange that offers yields as high as 20 per cent.

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Expressing support for further public education, the 10 executives said in their letter that the SFC should work with the cryptocurrency industry.

We recommend that the government work with the Web3 industry to educate the public by providing realistic examples of blockchain scams and fraudulent schemes, similarly to the existing measures in place to educate the public about telephone frauds, they wrote.

The Hong Kong Licensed Virtual Asset Association, a new organisation launched in May headed by Lawrence Chu, chairman of Venture Smart Financial Holdings, also said earlier this week that it aims to contribute to the efforts to raise public awareness of the opportunities and risks brought by virtual assets.

The association will help new enterprise entrants into the space and the public stay up-to-date on the latest regulatory, technological and market developments, it said.

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Hong Kongs crypto power players applaud Web3 regulation after JPEX scandal - South China Morning Post