THELOGICALINDIAN - With bitcoin afresh assertive account a flood of new money has afresh entered the cryptocurrency markets including from arising crypto markets such as Hong Kong Local media outlets are advertisement about that abounding new investors may be illprepared for the risks associated with cryptocurrency
Also Read: Japanese Investors Increasingly Switching From Traditional FX Trading to Bitcoin
Bob Laberge, a Canadian in His 50s Living in Hong Kong, Recently Invested in Bitcoin for the First Time
Speaking to South China Morning Post, Mr. Laberge declared that he aboriginal invested on November 15th, purchasing $500 USD annual of bitcoin back the amount was at about $6,600 – admitting alive actual little about cryptocurrency at the time. After a fortnight, Mr. Laberge chose to advance “tens of bags more” into bitcoin, however, and was larboard in a aerial accompaniment of all-overs due to his called bitcoin barter declining to acclaim his annual for four days.
“The way I dealt with the banks was absolutely the mindset back I was accepting into bitcoin. For best exchanges it’s actual difficult to get in blow with them. The alone way to acquaintance people, clashing a coffer area you alarm their cardinal and addition answers in a brace of minutes, is through a abutment ticket. And if they don’t acknowledgment the abutment admission you are larboard blind and it’s demanding back you’ve got a huge bulk of money sitting there.”
Mr. Laberge declared that he will not advance any added basic into bitcoin, admitting his advance accretion in amount by 70%. “My wife saw that it was activity up and she said we should advance added but I said ‘No, let’s not lose our heads.”
The President of the Hong Kong Bitcoin Association, Leo Weese, Has Commented on the Rush of New Investors Entering the Crypto Markets
“There is absolutely a big arrival of new [bitcoin] users; the amount increases accord bodies an allurement to get in as fast as they can,” Mr. Weese stated. “The botheration is that bodies are not authoritative acceptable decisions and they’re not cerebration about absolutely what it is that they’re advance in and what the risks are.”
Mr. Weese declared that he expects to see the collapse of several “poorly run” Asian cryptocurrency exchanges in future, admonishing that abounding investors are clumsily accounting for counterparty risk. “People abash bitcoin consistently actuality about with bitcoin exchanges consistently actuality around, but that’s not the case.”
Rapid Growth Poses Challenges to Regulators
Charles Mok, a adumbrative of the IT area to Hong Kong’s aldermanic council, has declared the booming cryptocurrency area as assuming a cardinal of challenges to regulators. “It puts us in a actual afflictive situation,” Mr. Mok stated. “On the one duke we appetite to see an industry developing about cryptocurrency. But on the added hand, I don’t anticipate these kinds of abstract activities … are absolutely accessory to the abiding development of crypto-technology and cryptocurrencies.”
Mr. Mok bidding apropos that should bounded bitcoin exchanges collapse, that Hong Kong’s Securities and Futures Commission (SFC) would seek to adapt the cryptocurrency industry. He states that the SFC would acceptable abridgement the acquaintance and ability appropriate to advance an able authoritative accoutrement for crypto, and could potentially resort to assuming prohibitive policies. Despite Mr. Mok’s concerns, Hong Kong’s banking regulator has not bidding the ambition to advance a specialized aldermanic framework for cryptocurrencies.
On December 11th, the SFC published a certificate articulating that companies gluttonous to action “bitcoin futures affairs and cryptocurrency-related advance products” in Hong Kong are appropriate to attach to absolute regulations authentic in the territory’s “Securities and Futures Ordinance.”
What accident administration strategies do you apply in the administration of your crypto holdings? Share your tips in the comments area below!
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