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FTX Crypto Exchange Relocates from Hong Kong Over Tight Regulatory Measures

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Fri, 09/24/2021 - 11:47
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Yuri Molchan
FTX derivatives exchange has left crypto-unfriendly Hong Kong for the Bahamas due to harsh regulatory policies of authorities
FTX Crypto Exchange Relocates from Hong Kong Over Tight Regulatory Measures
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Word has spread that popular crypto derivatives trading venue FTX has relocated from Hong Kong to warm and sunny Nassau, the capital of the Bahamas, as they are more friendly to crypto-related businesses than the authorities of HK.

The news was shared by the Chinese crypto journalist Colin Wu.

FTX sets up legal presence in Bahamas in advance

On Sept. 20, a press release came out, saying that a subsidiary of FTX, FTX Digital Markets, had received a registration from the local Securities and Exchange Commission. This potentially gives a wide range of opportunities for crypto businesses and allows them—crypto exchanges in particular—to expand in a legalized manner.

Former chief of OTC at Alameda Research, Ryan Salame, was hired as the CEO of the FTX subsidiary.

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China levels another big crypto crackdown

Earlier today, two documents that had been circulating inside China's central bank regarding a new crypto ban were made public. They threw the whole crypto market into the red and pushed Bitcoin down by 6% so far, to the $41,000 level, making Ethereum drop to $2,790.

The Central Bank of China (PBOC) has announced that all crypto transactions are illegal and banned them from circulating on the market.

All crypto-related activities from now on will be punished severely, these documents say. However, the ownership of crypto assets remains legal in China.

Gabor Gurbacs, director of the digital assets department at major asset managing firm VanEck, believes that such a negative stance on crypto will force Chinese investors to relocate a great deal of their capital from Asian to Western countries.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.