Hong Kong Markets Warns using Cryptocurrency Platform

FTX founder Bankman Fried denied bail in Bahamas

Hong Kong Financial watchdogs gave a final caution to avoid crypto exchange. Watchdogs term given to the people or group who monitors the activities of industry and Government, and eventually take legal action against them. After the massive failure of the crypto exchange FTX, everyone started worrying about the crypto future. After the arrest of FTX founder Sam Bankman Fried, the SFC(The Securities and Futures Commission) made a statement. “Investors are requested to avoid from high potential risk, associated with virtual currency.” The statement was made at a very delicate time when everyone started unsecured about cryptocurrency.

Furthermore, the SFC told, “While some of the virtual assets are used for saving and deposit, they are not monitored or regulated by any organizations and are not the same as a bank account. The government doesn’t provide any type of protection to the Investor. If they don’t understand these and are ready to bear the potential risk, then should not make any investment.” Though the amount hasn’t been discovered, FTX fraud is said to be one of the biggest frauds in history. SFC also talked about FTX fraud “They build the house of a card on deception.” Another crypto exchange Binance has seen a massive withdrawal of around a billion dollars within an interval of 24 hours. Binance Temporarily paused the withdrawal of stabled currency.

Cryptocurrency- A Future or Not

Though there has always been a debate about whether we should adopt cryptocurrency or not. All Governments trying to harness the use of Blockchain technology. The majority of the audience thinks crypto is the future. But due to money laundering, Security, and not being regulated, Government hesitates to adopt it. Still, every organization or Government comes with its own digital currency. India and China already released their digital currency. Last month India launched its CDBC. All the cryptocurrencies have fallen more than 40%.

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