Hong Kong: Cryptocurrency Companies Cannot Claim to Be “Banks”

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The Hong Kong Monetary Authority (HKMA) has warned cryptocurrency companies to avoid using the term “bank” unless they are authorized institutions to avoid misleading customers. Hong Kong Central Bank reminds cryptocurrency companies to describe themselves using terms such as “crypto banks” or “digital asset banks”, describing funds as “deposits” or promoting savings plans with low risk and high returns may violate Hong Kong's banking ordinance. The timing of the warning may be related to the ongoing liquidation crisis at JPEX, a heavily marketed cryptocurrency exchange in Hong Kong. JPEX paused some activities on the platform following a warning from another Hong Kong regulator, the Securities and Futures Commission (SFC), that JPEX was operating without a license in the country.

BingX's Bitcoin Chart

Source: TradingView & BingX

Over the weekend, BTC transactions were still quiet, price movements were insignificant. The main reason is that the basic logic of BTC in the current market has not changed. Long-term investors are focused on next year's BTC halving, Federal Reserve interest rate cuts, and approval of physically-settled ETFs. This has made them less enthusiastic about participating in short-term trading. At the same time, short-term traders are also reluctant to participate due to lack of liquidation. Therefore, BTC price remains within a narrow range. We will have to wait for important events to occur to see a real change in trend. Support is at $26,200 and resistance is at $26,600.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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