Scams Rise by Over 105 Percent in World's Most 'Crypto-Ready' Nation Hong Kong

Out of the 10,613 cyber-crimes that have been reported in Hong Kong so far this year, 798 made for crypto-related ones.

By Radhika Parashar | Updated: 8 August 2022 14:16 IST

Scams Rise by Over 105 Percent in World's Most 'Crypto-Ready' Nation Hong Kong

Photo Credit: Reuters

Hong Kong reportedly contained over 245,000 cryptocurrency owners in 2021

Highlights

Hong Kong is witnessing a boom in crypto culture
Nearly 800 crypto crimes have been reported in Hong Kong this year
Hong Kong government working on formulating crypto rules

Hong Kong, that recently topped the list of the world's most crypto-ready nation on the Worldwide Crypto Readiness Report, is riddled with scammers eyeing the sector. In the first six months of 2022, Hong Kong saw an alarming 105 percent hike in crypto scams as compared to the same period in 2021. As per a South China Morning Post report, the crypto community of Hong Kong has collectively lost $50 million (roughly Rs. 400 crore) to conmen this year so far.

Out of the 10,613 cybercrimes that have been reported in Hong Kong so far this year, 798 made for crypto-related ones, the South China Morning Post said in its report.

The hike in crypto scams in Hong Kong is being linked to the popularity that the digital assets sector is garnering in the nation.

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As per Triple-A statistics, Hong Kong contained over 245,000 cryptocurrency owners in 2021.

The government there is trying to frame the sensitive sector in laws so that investors are safeguarded against financial hazards.

In July this year, a new legislation came into existence in Hong Kong that mandated a licensing regime for crypto service providers operating in the country.

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As per the Worldwide Crypto Readiness Report, Hong Kong scored 8.6 out of 10 in-terms of being lucrative for the crypto sector.

The study, that has rated nations out of ten in crypto-readiness, analysed several aspects before declaring Hong Kong as the most crypto-friendly country. These aspects included the number of crypto ATMs, the legislation and taxes surrounding cryptocurrencies as well as the number of blockchain start-ups flourishing in the ecosystems.

Hong Kong also emerged to be among the most nurturing countries in-terms of blockchain-related start-ups.

The US, that secured the second position on this index with a 7.7 score has also witnessed a rise in crypto scams as a by-product of the increasing number of activities around crypto that are penetrating in the daily activities of US citizens.

A recent report by BanklessTimes has claimed that Americans crypto investors lost $185 million (roughly Rs. 1,500 crore) between January 2021 and March 2022 to romance scams and over $1 billion (roughly Rs. 8,000 crore) in total to other fraudulent activities.

Americans are also losing money to investment scams, and imposters pretending to be business consultants and government officials.

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Further reading: Cryptocurrency, Hong Kong, Crypto Scams

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More