US lawmakers have been hesitant to embrace the cryptocurrency industry since the collapse of Signature Bank, Silvergate, and Silicon Valley Banks. Colorado Senator Michael Bennet has pointed out the industry’s instability as the main reason behind the US’s reluctance to adopt it.
“Signature Bank failed, and almost a fifth of its deposits came from crypto,” he said, further stating that the industry is “notoriously unstable” and often misunderstood by those who don’t understand it.
Ambre Soubiran, CEO of Paris-based crypto market data provider Kaiko, believes that the US’s strict approach to crypto could have a significant impact on the industry’s future. “The US being more stringent these days than ever on crypto and Hong Kong regulating more favourably is going to shift the centre of gravity of crypto assets trading and investments towards Hong Kong,” she said.
Despite the US’s frostiness towards the cryptocurrency market, Hong Kong is determined to become a crypto hub. Over 80 virtual-asset firms have established themselves in the Fragrant Harbour, and 23 crypto firms plan to do the same soon.
China’s Crackdown on Cryptocurrencies Pushes Entrepreneurs to Hong Kong
China’s crackdown on cryptocurrencies has been in full swing since 2021. The country effectively banned financial institutions from providing cryptocurrency services. As part of the ban, banks and online payment channels are not allowed to provide trading, settlement, clearing, and registration of cryptocurrencies. The move left many Chinese entrepreneurs in a grey area with no clarity on regulations and safety concerns.
In contrast, Hong Kong has been committed to distinguishing itself as a global crypto hub. In 2021, the Hong Kong Securities and Futures Commission announced that it would take a different approach to crypto regulation compared to the blanket crypto ban in mainland China.
Xiaoba, a Chinese cryptocurrency entrepreneur, is moving his startup to Hong Kong and said, “There is clarity and a sense of safety in Hong Kong that would allow me to flourish.”
Big Eyes Coin Flourishing Amid Crypto Chaos
Despite the ongoing chaos surrounding cryptocurrencies in Mainland China and the US, Big Eyes Coin (BIG) has raised over $32.5 million in its 12th stage of the presale. The meme token’s resilience in such a volatile market shows its potential.
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Why Countries Crack Down on Crypto
Countries’ crackdown on cryptocurrencies stems from their largely unregulated nature, which can be used for scams, money laundering, and tax evasion. The instability of cryptocurrencies also has broader implications for the overall financial market.
The Potential of Crypto Remains Untapped
Although there are many negatives associated with the crypto market, it is still a very new form of currency, and its potential has yet to be fully realised. While China’s crackdown has pushed entrepreneurs to Hong Kong, the future of cryptocurrencies remains uncertain. Only time will tell whether crypto will become a widely accepted form of currency or continue to be viewed with scepticism by governments and investors alike.
Find out more about Big Eyes Coin (BIG):
Presale: https://buy.bigeyes.space/
Website: https://bigeyes.space/
Telegram: https://t.me/BIGEYESOFFICIAL
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