Hong Kong’s plan to restrict cryptocurrency investment to professionals means retail investors could move to unlicensed venues, said Global Digital Finance.
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Exchanges warn that Hong Kong’s crypto retail trader ban could backfire
Crypto industry actors in Hong Kong have been trying to push back against a forthcoming law that would restrict legal cryptocurrency trading to professional investors, locking out 93% of the local population from the market.
In comments to the South China Morning Post published on Feb. 15, industry body Global Digital Finance warned that the proposed law would be likely to push retail traders to embrace unregulated platforms. Global Digital Finance represents cryptocurrency exchanges such as BitMEX, Huobi, Coinbase and OKCoin, and has been at the forefront of industry efforts to push back against the forthcoming legislation.
Hong Kong’s Financial Services and the Treasury Bureau first published the proposal in Nov. 2020, as part of a bid to toughen Anti-Money Laundering and counterterrorist financing measures. The move aligns with efforts to bring domestic regulations into line with recommendations from the Financial Action Task Force, or FATF.
Yet the Bureau’s proposal…
Bitcoin saw a significant drop early on Monday, soon after it had looked primed for a convincing move above $50,000.
The top cryptocurrency slipped from nearly $49,000 to $45,926 during the early Asian hours and was last seen changing hands near $47,790 – down 1.8% on the day, according to CoinDesk 20 data.
The decline surprised many investors, as a notable all-time high milestone had looked on the cards amid optimism generated by the recent wave of institutional adoption.
So what happened? Here are three reasons that may explain the sudden price pullback.
1. Funding stress
“Bitcoin and other cryptocurrencies, in general, looked overheated, and the Asian session drop was likely a ‘funding reset’ needed for a sustained move above $50,000,” Matthew Dibb, COO and co-founder…
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Japan’s SBI in Talks Over Joint Venture to Make Crypto a Core Revenue Source
SBI Holdings, a major Japanese financial services firm, is currently in discussions with foreign financial firms to establish a cryptocurrency joint venture.
SBI’s founder and CEO Yoshitaka Kitao said his firm would “definitely” turn the venture into a core earner for SBI, while adding his firm is considering large scale mergers and acquisitions (MA).
While Kitao noted at least two deals were on the table for discussion with possible joint-venture partners, he declined to disclose further details.
The plans were apparently prompted by cryptocurrency’s entrance into the financial mainstream. “Institutional investors – mainly hedge funds – have recently started investing in cryptocurrencies … Not just institutional investors but also Elon Musk,” Kitao told Reuters on Friday.
Tesla, of which Musk is CEO and founder, disclosed it had bought $1.5 billion in bitcoin last Tuesday under a…
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Institutional adoption underscores urgency of clear crypto rules, says Hester Pierce
As institutions move into the cryptocurrency space, the need for clear rules regarding digital assets is critical, an official at the Securities and Exchange Commission said.
SEC commissioner Hester Peirce believes that clear cryptocurrency rules are needed now more than ever due to firms like Tesla and Mastercard actively embracing the alternative asset class.
Peirce discussed the implications of institutional crypto adoption with Reuters on Saturday, following a series of massive crypto-related events in the last few weeks. After Elon Musk’s Tesla hinted at payments in Bitcoin (BTC), more companies including the United States’ oldest bank BNY Mellon and payment giant Mastercard announced plans to introduce crypto services as well.
“That adds to the urgency of us taking some sort of action in this area to provide more clarity,” the commissioner said. Widely referred to as “Crypto Mom” in the crypto community, Peirce has…
The value of Dogecoin (DOGE) sunk 23% in a matter of hours on Feb. 15, after Elon Musk drew attention to the vastly unequal distribution of DOGE coins and urged major holders to sell off their holdings.
Dogecoin has one of the most unequal coin distributions in the cryptocurrency space, with 28.7% being held by just one person, and the top 12 holders possessing almost 50% of the supply. Just before midnight on Feb. 14, Musk tweeted:
“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue imo.”
Little over seven hours later, the Dogecoin price had plunged 23%, from $0.063 to $0.048. While Musk’s tweets have previously been credited with moving cryptocurrency prices, not least Dogecoin, his role in Monday’s drop was less clear given that over $105 billion departed the rest…
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$50K and BTC’s biggest weekly candle ever: 5 things to watch in Bitcoin this week
Bitcoin (BTC) is riding high on a wave of positive sentiment as it prepares to take on $50,000.
After a volatile weekend which saw a new all-time high, expectations are putting Bitcoin back in the spotlight as a fundamental level comes into play — what’s in store?
Cointelegraph considers five factors which could serve to move the market in the coming days.
Stocks gain while the dollar dives
Stocks are climbing, building on a record-breaking rally which has seen many indexes already shoot higher than ever.
Despite warnings that the good times may soon end, including from Warren Buffett’s market indicator last week, markets began Monday in the green.
Japan’s Nikkei touched 30,000 points for the first time since 1990 on 1.6% growth.
At the same time, the strength of the U.S. dollar continues to falter. The U.S….