FTX Collapse: It Looks Like Hong Kong Avoided a Bullet

November 28, 2022 By Prelo Con

(Image Credit Google)

With FTX's demise, it appears that Hong Kong has escaped harm because to its conservative regulatory framework that made it difficult for such enterprises to function. Some investors who missed the opportunity to invest in FTX found solace in Hong Kong's cautious stance. In a way, it prevented people from using the cryptocurrency platform that failed. However, the Hong Kong news source claims that even after leaving the Asian region, Alameda Research and FTX employees continued to work in Fragrant Harbour. As a result, they were making frequent trips from the Bahamas to their previous residence. FTX

According to The South China Morning Post, Sam Bankman-Fried, the head of FTX, was still a well-known personality in Hong Kong a few days prior to the company's abrupt collapse. The CEO of FTX addressed an audience in Asia via video teleconference. "How new technologies are boosting financial inclusion," he told them. Also Read: Amazon is Supposedly Making A Miniseries on FTX’s Fall Some of his audience, according to The South China Morning Post, included people from Hong Kong's financial authorities. Bankman-Fried elaborated on the impact of the new technology. Ten days later, the cryptocurrency site collapsed. And in light of that, some investors claim that Hong Kong's conservative system has rescued them. Richard Douglas, the Chief Executive Officer of Saxo Markets in Hong Kong, gave his opinions on what happened.

The Financial Secretary of Hong Kong said that because of the bankruptcy of FTX, transparency and proper supervision must be strengthened. Hong Kong just made a manifesto to welcome cryptocurrency companies around the world. https://t.co/w9nFTAQhuN
— Wu Blockchain (@WuBlockchain) November 13, 2022

The FTX fiasco, according to him, "perfectly illustrates why Hong Kong regulators need to bring back virtual asset trading in a well-regulated market for investors." According to Douglas, the Securities and Futures Ordinance is a well-structured regulatory framework that "is designed to prevent exactly this type of situation, [with] very detailed and specific guidelines around how client money and client securities should be treated, which all licensed entities have to adhere to."

By Prelo Con

Following my passion by reviewing latest tech. Just love it.

FTX Collapse: It Looks Like Hong Kong Avoided a Bullet

Walmart's GenAI Search Engine: Challenging Google's Dominance in Retail Search

Introducing the MSI Claw Handheld: Your Ultimate Gaming Companion

Uber Increases In-App Ads, Prompting Mixed Reactions from Customers

Apple's iOS 18: A Leap into the AI Era

Google's Regular Pixel 8 Won't Get Gemini Nano AI

MacBook Air M3 Makes Amends for M2's Storage Blunder

Samsung Unveils the Galaxy M15 5G

Elon Musk's xAI to Open-Source Chatbot Grok

Contra: Operation Galuga - A Modern Run-and-Gun Classic

Musk Confirms X's TV App Arrives This Week

7.9 percent of the bitcoin ATMs in the U.S. are provided by Cash Cloud

Celsius allegedly used customer funds to support its own cryptocurrency token

Amid FTX's Recovery of $5 Billion in Assets, Bitcoin Rises to its Highest Price in a Month

US-based crypto exchange Kraken will stop conducting business in Japan

CryptoWatch: Best Crypto to Buy for Christmas; FTX's Impact on Employees; Bitcoin Will Rise in 2023

Underpaid young people bet on crypto due to financial anxiety: Survey