Hong Kong Welcomes Crypto: Wave of New Capital to Boost Asia’s Economy

• Hong Kong’s Securities and Futures Commission (SFC) has taken a new approach to the crypto industry, which could bring a new wave of capital to the largest digital assets in the ecosystem.
• Kaiko suggests that Asia appears to be positioning itself at the forefront of the next digital asset revolution by welcoming crypto business.
• The influx of new capital into Hong Kong and Asia could mean economic growth for the region and Asian exchanges.

Hong Kong’s Crypto Industry Regulations

Hong Kong’s Securities and Futures Commission (SFC) has taken a new approach to regulating the nascent crypto industry. This fresh outlook could benefit both the cryptocurrency market and attract more capital investments into the largest digital assets on offer in the ecosystem. On Monday, it became clear that Hong Kong is ready to open its doors to trading cryptos in Asia, a move that stands out from other enforcement actions taken by other countries such as the United States’ SEC.

Asian Crypto Revolution

Digital asset market data provider Kaiko weighed in on this matter in their blog post, suggesting that Asia is taking up an advantageous position at what appears to be at the vanguard of yet another digital asset revolution – one that welcomes crypto businesses with open arms. Kaiko Research Analyst Conor Ryder said: “An enticing East could well be the next catalyst that propels crypto prices upwards, with some proclaiming that this run has already started, propelled by an Asian-linked token rally”.

The Reason Behind The Change Of Heart

After a turbulent year filled with low prices and exchange debacles such as FTX, why are jurisdictions like Hong Kong now loosening their regulatory policies regarding cryptocurrencies? Kaiko analyst Conor Ryder believes it may have something to do with recent enforcement action from US regulators – making now seem like an opportune moment for Hong Kong to strike while everyone is looking away. Data compiled by Kaiko reveals how Asian exchanges were among those who benefited most from 2021’s bull run — though since China outlawed cryptos at end of 2021 activity has been considerably dampened compared to other regions due to Binance’s reduced trading volumes there.

Eligible Cryptocurrencies Under SFC Proposals

Under SFC proposals eligible cryptocurrencies must meet certain criteria before being traded on approved indices — these include being part of ‘the largest cap virtual assets’ listed therein; perpetual futures markets responded positively when they realized this meant renewed flows from Asia would soon be incoming again.


The fresh regulations laid out by Hong Kong’s SFC may well prove beneficial for both investors seeking returns as well as economies across Europe or North America who may take advantage of increased trading activities between themselves and Asia — not least because greater liquidity often leads lower spreads which can benefit all traders involved regardless if they are long or short term invested in any given asset class or instrument type.

Binance Mulls Cut-Off From US Businesses Over SEC Rules

• Binance is reportedly considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the SEC.
• The SEC has alleged that BUSD, a stablecoin pegged to the US dollar, is a security and sued crypto firm Paxos.
• Binance CEO Changpeng Zao denies allegations of moving $400 million from a “secret” account paired with the exchange’s subsidiary Binance.US into his trading firm Merit Peak.

Binance Considering Ending Relationships With US Business Partners

Binance, the largest cryptocurrency exchange in the market, is reportedly considering ending relationships with U.S. business partners due to a tightening in regulatory policies by the Securities Exchange Commission (SEC). Allegations have been made by the SEC that BUSD, a stablecoin pegged to the US dollar, is actually a security and legal action has been taken against crypto firm Paxos as a result of this determination.

Reassessing Investments In The United States

The climate between exchanges and U.S. regulators has become increasingly concerning as a result of these events and as such Binance is reassessing investments in the United States jurisdiction where it does not currently possess an operating license but conducts business through its subsidiary Binance.US

CEO Denies Allegations

Binance CEO Changpeng Zao (CZ) has denied any reports linking his company to moving $400 million from an undisclosed account associated with its American subsidiary into his personal trading firm Merit Peak located in British Virgin Islands according to Reuters sources although spokeswoman Kimberly Soward did confirm that Merit Peak was not actively trading or providing services on the platform and only employees within Biance US had access to it at this time.

Crypto Market Experiencing Rough Start To Q1

Despite recording some positive results during recent bull runs in the cryptocurrency market it appears that Q1 will be exceptionally challenging for all involved due largely in part to intensified scrutiny from U.S regulators making many investors uncertain of their positions going forward leaving them vulnerable during volatile times such as these when they need stability more than ever before if they are going to make successful trades over long periods of time without compromising their capital reserves too heavily or unnecessarily risking losses whenever possible


Overall it appears that increased regulation from U..S watchdogs is causing instability amongst cryptocurrency exchanges who are now looking for alternative ways to conduct business away from U..S boundaries so as not be subject to such extreme levels of oversight which may ultimately damage their reputation and hinder potential growth opportunities both now and possibly well into future quarters also

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Bitcoin Market Sentiment Reaches Neutral

• Bitcoin price has dropped below the $22,000 level and the Fear and Greed Index now points at a “neutral” sentiment.
• Values of the index higher than 50 mark indicate that the market is greedy, while those lower than 50 imply investors are fearful.
• The longest ever streaks of fear and extreme fear in the history of Bitcoin have finally come to an end earlier this year due to a rally in its price.

Fear And Greed Index

The “fear and greed index” is an indicator used to measure general sentiment among investors in the Bitcoin market. It uses a numeric scale that runs from 0-100 to display sentiment levels, with values above 50 suggesting greed, those below representing fear, and 46-54 being considered as “neutral”. Special sentiments of “extreme greed” (index > 75) and “extreme fear” (index < 25) are also monitored by traders, as tops and bottoms in the price of Bitcoin have historically tended to take place during these times.

Current Market Sentiment

Currently, the Bitcoin fear and greed index has a value of 48 which suggests that investors have a neutral sentiment with a slight lean towards fear. This is lower than what was seen recently when the market had been quite greedy. Over the past year both these streaks were some of the longest ever recorded; however they came to an end earlier this year when there was finally a rally in its price.

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The current decline in Bitcoin’s price has resulted in its Fear & Greed Index dropping below 50 – indicating that investor sentiment has shifted towards neutrality – although there still remains some lean towards fearfulness. Although such extreme sentiments have historically indicated tops/bottoms within its price fluctuations; previous streaks have been broken due to rallies earlier this year resulting in renewed optimism for potential profits within cryptocurrency investments.