A pretty hostile attitude of the regulatory authorities, along with severe quarantine laws, making the city an exceptional case in the international business, are being faced by the decentralized industry in Hong Kong. In such a scenario, FTX (an exchange of digital-asset derivatives) has wrapped up, and currently, Nassau (a city in the Bahamas is the headquarter thereof.
Hong Kong is no more FTX’s home
The exchange has referred to the Bahamas as a friendlier regulator because the company has not been quarantined for entering the country. Sam Bankman-Fried (the founder and CEO of FTX) stated that the country, along with its respective authorities, has taken a proactive stance regarding the cryptocurrencies that count among the chief reasons encouraging FTX to move toward the island. Currently, the Bahamas’ Securities Commission is regulating FTX under 2020’s DARE Act (one included in a handful of wide-ranging regulations for the exchanges of crypto), according to him.
Previously this week, the reports mentioned that Ryan Salame was announced as FTX-Digital-Markets’ latest CEO; thus, the responsibility of managing the local initiatives of the company throughout the country has now come on his shoulders. Additionally, the exchange would expand in the Bahamas and hire employees from within the vicinity to support the country. As contrary to this, Hong Kong is going wild in its approach regarding digital assets. Many experts have voiced that the ambiguous regulations related to restrictions and custody that prohibit non-recognized investors from participating in the local market of cryptocurrency have endangered the crypto industry across the city.
The Hex Trust’s CEO Alessio Quaglini pointed toward Hong Kong’s unclear regulations for crypto assets. A Hong Kong-based registered public-trust firm First-Digital-Trust’s CEO, Vincent Chok, also agreed to the statement of Quaglini specifying that a lot of inconsistencies exist in the treatment of crypto by several regulatory bodies of Hong Kong.
FTX: the earliest prominent business quitting Hong Kong for quarantine law
Presently, Hong Kong is putting especially all those coming from the UK, USA, and other European territories into quarantine for up to 21 days irrespective of their vaccination status. Back in June, on Twitter, it had been complained by Bankman-Fried that he was restricted to return to Hong Kong due to the omission of the middle name in the report of his Covid test despite being completely vaccinated and having an exact passport number. The token of FTX exchange appears to be reacting positively in correspondence to the shift of the company from Hong Kong, and climbing of about 6.6% has been witnessed in its value during the previous 24 hours, making it nearly $60.53, as per CoinGecko.