Crypto entities are plummeting as the domino effect after the FTX debacle goes on across the globe. Subsequently, Atom Asset Exchange (AAX) has suspended withdrawals on the platform. The crypto exchange was established only 4 years back and has halted withdrawals for nearly a month. The management group of the company is not in contact and the extent of its losses is unknown yet as per SCMP.
**Trending Now: **SBF Secretly Funded Crypto News Website
Hong Kong’s SCMP Editorial Calls for Comprehensive Crypto Regulation in the Wake of FTX Debacle
A statement was made by AAX in which the firm claimed that its funds had not been compromised at all. Nonetheless, its efforts may not be fruitful to assure the users, keeping in view its actual performance. The possible consequences to be faced by AAX-related investors remain to be seen in the future. Notwithstanding the FTX debacle, Paul Chan Mo-Po (the Financial Secretary) has stated that cryptocurrencies and virtual assets cannot be stopped.
Thus, the city is enthusiastic to follow Singapore in the case of financial innovations. Nevertheless, Hong Kong should pay an attention to the thing that Temasek (the state investment branch of Lion City) has gone through reputational damage. This took place because of the agency’s unsuccessful bet on FTX that paved the way toward a US$275M write down, or nearly 1% of the net value of its portfolio (US$293.97B) on the 31st of March.
**Related: **Alameda Reportedly Rescued FTX in 2021, SBF Denies Knowing
The regulators require not eliminating the innovations or the target of the city to turn into a hub for virtual assets will perish. Focusing on this, they are pursuing to implement beneficial rules. Chan mentioned that the authorities intend to adopt virtual assets and there is a requirement for unambiguous definitions for the digitalized and distinguished types of stocks, bonds, and exchange-traded funds.
Financial Secretary of Hong Kong Says Insiders Cannot Go Beyond Regulations
As per him, the rest of the financial tools, which are in advance regulated, need adequate regulation. In his words, regulators have not yet even touched Bitcoin, NFTs and the rest of the digital tokens for regulation. Looking at their hazards in dealing with financial stability, money laundering, and customer protection, proper regulation implementation is inevitable. According to Chan, the insiders should not be allowed to go beyond regulation, particularly amid the ongoing crisis.
Comments