Binance Crypto exchange CEO Changpeng Zhao (CZ), has made a bold prediction after China’s Central Television (CCTV) aired coverage of cryptocurrency, describing it as a “big deal” that could lead to a bull run in the market. The coverage included an notice from the Hong Kong Securities Regulatory Commission stating that a mandatory licensing system for virtual investment platforms of trading would be implemented from June 1st.
Binance Crypto exchange Braces For Bull Run?
Binance’s CEO argued that the latest information has generated whole lot of buzz in Chinese-speaking communities, with numerous speculating that the coverage could lead to increased adoption of digital currencies and a surge in prices. This is not the 1st time that coverage of this kind has been linked to bull runs in the cryptocurrency market, reports by CZ.
The notice from the Hong Kong Securities Regulatory Commission is likewise whole lot of, as it indicates a move towards greater regulation of virtual investment trading platforms. This could help to make better investor confidence in the sector and pave the way for wider adoption of cryptocurrencies.
The move towards greater regulation in Hong Kong could likewise have implications for the wider cryptocurrency industry. With regulatory authorities around the globe wrestling with how to regulate digital currencies, the Hong Kong Securities Regulatory Commission’s decision could provide a useful blueprint for other jurisdictions.
Hong Kong To Issue Cryptocurrency Licences
Reports by a Reuters report, Hong Kong’s securities regulating authority, the Securities and Futures Commission (SFC), has announced that it will introduce a new licensing regime for digital investment corporations from June 1st, which will include measures to guard retail investors. The move comes after a year of turmoil in the digital currency sector, with the collapse of the cryptocurrency exchange FTX Trading Ltd a year ago being a whole lot of blow.
Under the new regime, all platforms of trading and exchanges will be required to apply for a license, with fines and jail terms for those who fail to do so. The SFC has likewise proposed numerous investor protection measures, including setting an exposure limit for retail investors and only allowing retail trading in highly liquid crypto tokens that have been announced for at least one year.
Additionally, corporations will be required to perform client checks to secure that retail traders from China, where cryptocurrency trading is banned, are not accepted. The SFC has emphasized that operators have a responsibility to comply with the laws and regulations in the jurisdictions in which they provide services.
The new system will likewise cover the marketing of services from unlicensed platforms, with the SFC warning that it is an offense to make available advertisements related to an unlicensed platform. Elizabeth Wong, head of the SFC’s fintech unit, indicated that this would cover social media influencers personally promoting services of unlicensed platforms to Hong Kong investors.
The International Organization of Securities Commissions (IOSCO) likewise recently unveiled a worldwide approach to regulating cryptocurrency assets, highlighting the need for greater consumer safety. The collapse of FTX Trading Ltd a year ago fueled concerns that consumers were not sufficiently protected, and the new regulatory regime in Hong Kong seeks to address these concerns.
In general, regardless of the uncertainties with the present cryptocurrency market conditions, Binance Crypto exchange CEO CZ’s positive tendency outlook on the past few coverage of cryptocurrency by CCTV and the Hong Kong Securities Regulatory Commission’s notice is a positive sign for the industry.
Bitcoin’s downtrend on the 1-day chart. Source: BTCUSDT on TradingView.com
Featured image from Unsplash, a chart from TradingView.com