Wealthy families in Asia are becoming more active about cryptocurrencies. Reuters previously reported that family offices across this region are steadily raising their investments in digital assets, and some Chinese firms even seek to allocate as much as 5 percent of their portfolios to crypto. That’s a pretty big jump compared to just a few years ago, when tiny “testing of the waters” was the norm.
This surge appears to be fuelled by a mix of bullish sentiment and regulatory milestones. Bitcoin has reached a new all-time high of $124K in August, which was inspiring enough for some people. But more importantly, in the U.S., the newly signed GENIUS Act has become a major step forward in providing legal clarity for digital assets. And soon after, Hong Kong officially launched its own stablecoin legislation.
All these events happening in quick succession have sparked fresh enthusiasm around crypto. Just one example of this is how South Korea’s largest exchanges reported a 17 percent surge in trading volumes this year compared to 2024.
Long story short, the wealthy in Asia increasingly see crypto as a “must-have” in their portfolios. But this boom in demand leads to an important question: can crypto exchanges live up to the growing trust that’s being placed on them? Especially since past events have cost them that trust before?
The fragile foundation of trust
Crypto exchanges have had their share of scandals over the years. The notorious collapse of FTX in 2022 is still fresh in people’s minds even now. And after that, there have also been cases closer to Asia.
One example is the JPEX debacle in Hong Kong in 2023, where over investors lost roughly HK$1.4 billion, making it one of the biggest fraud cases in the region in recent years. A survey later pointed out that this incident had greatly shaken confidence among Hong Kong’s investors. The lack of interest in holding crypto assets reached 41 percent — a 12 percent jump compared to how things had been before the incident.
Another prominent case that comes to mind was South Korea’s Upbit in late 2024. The local regulator had found about 700,000 violations in the exchange’s KYC practices, which led to a massive crackdown and a business suspension that lasted until June 2025.
Both of these cases exposed glaring regulatory vulnerabilities, triggered enforcement actions and policy reforms, and, most importantly, fueled public scepticism toward crypto as a whole. They reminded the market just how fragile confidence can be — when billions vanish overnight, reputations crumble faster than you can blink.
And this isn’t just a financial problem — it’s a communicational one. Too often, exchanges go silent when crises hit. FTX had been a textbook example in that regard: confusion and misinformation left by the lack of any clear communication caused panic to spread unchecked. Users didn’t know what was happening, and by the time any explanations surfaced, trust was already gone.
The same pattern later played out with Hong Kong’s JPEX, as users first learned something was wrong only when withdrawals failed. They had begun reporting account issues well before any official message came.
Crisis situations happen. There is no escaping that, no matter how some might follow that line of wishful thinking. But it’s not just the underlying failure that hurts people’s confidence when such cases hit — it’s also the silence and lack of honest communication. Even minor problems can become full-blown trust issues if users are left to wonder on their own without support.
If exchanges want to earn the confidence of Asia’s investors again, they need to understand that money alone won’t build credibility. Transparency, professionalism, and reliability will. And to project that image, they will need clear communication practices.
What crypto can learn from traditional finance
I have often seen crypto firms that needlessly make things opaque by hiding behind jargon and ambiguous business models. Yet when people are trusting you with their money, clarity isn’t optional. It’s the cornerstone of everything you’re trying to build.
Think of how traditional exchanges like NASDAQ or the London Stock Exchange are perceived. They convey stability and professionalism. People know who’s in charge and how to reach them.
In contrast, many crypto exchanges still run on distributed teams with no clear point of contact or chains of accountability. That may have worked in crypto’s early days, but as the clientele shifts to high-net-worth individuals and institutions, such vagueness won’t cut it.
Good communication is about being proactive, consistent, and human. When something breaks — and in finance, something always does — users want answers, not silence. They want a credible voice explaining the situation and reassuring them that there is a plan of action in place. They need someone to take responsibility and tell them that it’s going to be alright. Without that, a single incident, amplified by rampant speculation on social media, can spiral into a mass panic in hours.
This is why wealthy investors, despite their growing appetite for crypto, still remain cautious. They are accustomed to dealing with institutions that operate under stricter, clearer rules. Exchanges that can’t provide a similar level of clarity risk being left behind as the market matures.
Building for crisis
It’s tempting for a business to assume: “that won’t happen to us.” I’ve seen it happen all too often. But history shows that it’s a very dangerous hole to fall in. Crises are part of the terrain, and instead of hoping that you won’t encounter them, it’s a lot wiser to plan for them in advance.
That means developing a real crisis playbook, which should include the following elements:
- Pre-approved messaging templates for common incidents like hacks or outages;
- Defined spokespersons for different situations, so the public knows who speaks and when;
- Coordination between legal, PR, and tech support teams to keep responses aligned across channels and avoid giving any misleading news.
When a storm hits, having such playbooks in place can make all the difference between surviving and sinking. And exchanges should regularly stress test their scenarios to ensure teams know what to do when the unexpected comes knocking.
And another major point to pay attention to is the leadership factor. Crypto often prides itself on being “trustless,” but as we already covered, people still look to public spokespersons when things go wrong. Investors want a human face they can relate to.
Which is why exchanges that cultivate strong leadership voices will be far better equipped to retain trust during turbulent times. A leader’s credibility, in some cases, is worth more than a legal shield. It stabilizes communities and provides an anchor for people to cling to in times of chaos.
The road ahead will be paved with transparency
Trust, once broken, is hard to rebuild. Asia’s wealthy are ready to invest in crypto, and exchanges stand to benefit enormously from this new wave of demand. But if they continue repeating old mistakes, the opportunity will slip away.
In order to secure their own survival and help build a more stable broader crypto ecosystem, exchanges need to prioritize responsible communication and business practices. Those that don’t will find themselves sidelined, no matter how bullish the market becomes.
Crypto is maturing. It’s time for exchanges to mature with it.
Valentina Drofa is a financial market consultant. She is Founder and CEO of Drofa Comms, an international PR consultancy specializing in financial and fintech sectors. Valentina has a PhD in Economics and is the author of several books on financial literacy.
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