Crypto market: Early morning shock, new OTC regulations in Hong Kong, waiting for the shoe to drop!
I stayed up late last night to read the news, worried that Israel and Palestine would launch another early morning raid. These two enemies fight, and investors in the crypto market always pay the bill. It's too difficult! Every time they go to war, our assets are cut in half. Who can bear it? Firmly support President Biden's peace initiative!
When I got up in the morning, I saw that the market finally showed signs of rebounding. Bitcoin returned to $65,000 and Ethereum also stood at $3,100. But the rebound is still relatively weak. After the plunge in other altcoins in the past two days, many of them fell back to the price of Bitcoin when it was more than $20,000, but they did not follow Bitcoin's strong rebound and are still very weak.
In this case, we must remain highly cautious and never be tempted by the dealer to buy at the bottom until the warehouse is blown up. After all, Bitcoin is only $65,000 now, and altcoins have fallen like this. If Bitcoin falls below $60,000, altcoins are probably finished. So, brothers, don't rush to buy the bottom and rebound, hurry up and save money, the alarm has not been lifted yet!
Today, I am more concerned about the news that the Hong Kong Bitcoin and Ethereum spot ETFs were approved last week. Last week, it was rumored that there would be results as early as today, but now it seems to be empty.
This morning's news is only this:
The public consultation on the licensing system for virtual asset over-the-counter service providers (OTC) in Hong Kong ended last Friday.
According to the Hong Kong Economic Journal, the system only covers a few cryptocurrencies such as Bitcoin and Ethereum, which has aroused concerns among some industry insiders.
The Hong Kong Virtual Asset Industry Association called on the government to exempt USDT and USDC from trading restrictions to avoid a significant impact on business development.
Some industry insiders said that reducing the types of cryptocurrencies that can be traded may lead to business transfer to other regions. In addition, some people have expressed concerns about the proposed HK$8,000 transfer threshold and customer due diligence requirements, believing that this may lead to customer loss. In addition, for small OTCs, requirements such as the appointment of compliance officers and money laundering reporting officers may also constitute significant cost pressures.
This seems to be only about OTCs, not ETFs.However, OTC is an important channel for legal currency to enter and exit the crypto market, and it has always been a strictly controlled area in China. The fact that it can be openly discussed and studied in Hong Kong this time is also a great progress, indicating that the policy is loosening, and it can even be said to represent a certain tendency of the mainland regulators. After all, Hong Kong's current policies are derived from the mainland.
If Hong Kong OTC can operate legally and compliantly, it will undoubtedly pave the way for outside funds to enter the crypto market in the future. It will not only be conducive to the entry of foreign capital, but also open a door for the entry of mainland funds, and test the legality and compliance of mainland OTC. After all, the biggest concern in China is that OTC will lead to the outflow of wealth and break the strict foreign exchange control system.
Therefore, today's OTC news is also a good thing. I hope that the next good thing is that the ETF is really approved!
