From the 10,613 cyber-crimes which have been discovered by the police in Hong Kong so far this year, 798 were cryptocurrency-related crimes.
Hong Kong, that recently placed first on the list of the top crypto-ready nations according to the Worldwide Crypto Readiness Report, is plagued by scammers who are eyeing the industry. The first half of the year 2022 Hong Kong saw an alarming increase of 105 percent in crypto scams , compared with the same timeframe in 2021. According to an South China Morning Post report that the crypto community in Hong Kong has collectively lost $50 million (roughly 400 crore). 400 crore) to con-artists this year, so far.
Of the 10,613 cybercrimes which have been reported to Hong Kong so far this year, 798 of them were cryptocurrency-related crimes according to the South China Morning Post said in its report.
The rise in scams involving crypto within Hong Kong is being linked to the acclaim that the sector of digital assets is gaining in the country.
According to the Triple-A data, Hong Kong contained more than 245,000 cryptocurrency owners by 2021.
The government is trying to define the sector as sensitive with laws to ensure that investors are protected against risky financial situations.
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In July an amendment to the law was passed at Hong Kong that mandated a licensing system to the crypto-related service companies operating in Hong Kong.
Hong Kong, that recently placed first on the list of the top crypto-friendly nations according to the Worldwide Crypto Readiness Report, is plagued by scammers who are eyeing the market. The first half of the year 2022 Hong Kong saw an alarming rise of 105 percent in cryptocurrency scams , compared with the same timeframe in 2021. According to an South China Morning Post report the crypto community of Hong Kong has collectively lost $50 million (roughly 400 crore). 400 crore) to scammers this year, so far.
Of the 10,613 cybercrimes recorded by Hong Kong so far this year, 798 were related to crypto according to the South China Morning Post said in its report.
The rise in scams involving crypto that have been reported in Hong Kong is being linked to the acclaim that the digital asset sector is receiving in the United States.
According to the Triple-A data, Hong Kong contained more than 245,000 cryptocurrency owners by 2021.
The government is working to frame this sensitive area in law to protect investors against financial risks.
In July of this year an amendment to the law was introduced within Hong Kong that mandated a licensing process that applies to the crypto-related service companies operating within Hong Kong.
According to the Worldwide Crypto Readiness Report, Hong Kong scored 8.6 out of 10 in terms of its potential for profit in the crypto industry.
The study, which assessed countries out of ten in their crypto-readiness, looked at a variety of aspects prior to naming Hong Kong as the most crypto-friendly nation. This included the number of ATMs for crypto in Hong Kong, the law and taxation regarding crypto currencies, as well as the sheer number of blockchain-related startups thriving within the ecosystems.
Hong Kong also emerged to be one of the countries with the highest level of nurturing of blockchain-related startups.
The US which holds the second place on this list with an 7.7 score, has also experienced an increase in scams involving crypto due to the growing quantity of activities involving crypto that have penetrated into the everyday lives of US citizens.
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The new article by BanklessTimes has stated the Americans crypto investors have lost $185 million (roughly about Rs. 1500 million) from January 20, 2021 and March 2022 as a result of romance scams and also more than $1 billion (roughly around Rs. 8000 crore) all to other frauds.
Americans are also losing money due to fraudsters in the field of investing, as well as imposters pretending to be business advisors and officials from the government.
