Best Bitcoin Exchange for Hong Kong
Hong Kong’s Treasury clears up a misconception about crypto currencies. One of the most frequently voiced criticisms of crypto currencies could now have been refuted by the Hong Kong tax authorities of all people. Again and again economists, politicians and critics associate Bitcoin with crimes and the financing of terrorism. In a recent report from Hong Kong on terrorist financing and money laundering, however, the danger of Bitcoin and Co. is classified as low. Since 2013, Bitcoin has only been mentioned 167 times in reports to Hong Kong police. We looked at the report for you.
Most of the mentions in police reports are blackmail by a so-called ransom commodity – like the “WannaCry” attack in 2017. At that time computers were encrypted worldwide, including sensitive devices in hospitals. Decryption was offered in return for a ransom payment in Bitcoin to the authors of the malware.
Hong Kong about Bitcoin: “The threat level is low”
Crypto currencies would hardly play a role in criminal activity. A mention in the police report does not mean that it actually comes to an offence, emphasizes the tax authorities. With smuggling and drug deals crypto currencies hardly appeared. Overall, Bitcoin’s assessment by the tax authorities is: “The threat level is low”. This is mainly due to the fact that the Hong Kong Special Administrative Region has not imposed any state sanctions for transactions in crypto currencies. Thus, crypto fans do not have to move outside the law. The report states that the four crypto currencies registered in Hong Kong are subject to intensive monitoring.
Hong Kong is dealing with the issue offensively. Government and financial supervisory authority would clear up the consumers with warnings over the respective risks of crypto currencies. “Circulars are sent regularly to alert regulated institutions to the risks when potential or existing customers use their services for activities with digital currencies,” the agency writes.
It concludes: “Although terrorist financing is a weak point for digital currencies, there appears to be no visible impact on overall risk in Hong Kong. The risk of digital currencies is classified as medium-low.”
China: “Transactions with crypto currencies are officially banned”
The number of crimes committed with Bitcoin in Hong Kong was comparatively low. In contrast to China, this is less surprising as China has declared war on 2017 crypto currencies. The regulations there point to a ban on all transactions with crypto currencies. “They prohibit trading in all crypto currencies,” Adam Efrima, Operations Manager of the eToro China trading platform. “Transactions and trading in crypto currencies are officially prohibited.”
Attempts to stop crypto currencies will not be successful in the long run
According to the financial expert, the law literally states that one should not take part in any crypto exchange. If only the exchange of crypto currencies is forbidden, this will result in a higher rate of misdemeanours. “Measures from China, such as attempts to stop ICO and crypto currencies, are unlikely to be successful in the long term,” quotes “shareholder” Kristof Van de Reck, European head of the Blockchain platform NEM. “I don’t believe in this approach because it hampers the innovative and legitimate possibilities and at the same time doesn’t prevent criminals from abusing the technology.
In Germany, too, efforts are being made for the first time to contain any risks associated with Bitcoin and Co. This year, for the first time, the CDU/CSU and SPD have included possible regulatory measures for crypto currencies in the coalition agreement. In it the government parties agreed on “an appropriate legal framework for the trade with crypto currencies”.
Neteller now enables customers to buy, sell and hold crypto currencies. The Neteller brand is a payment service provider of Paysafe Financial Services Limited, a company that enables Internet payments via an e-wallet. The crypto currency service is already active in ten countries. The e-money institute plans to enter 50 further markets. So far 28 Fiat currencies can be exchanged in Bitcoin, Bitcoin Cash, Ether, Ethereum Classic and Litecoin. Supported currencies include the Australian, Canadian and US dollars as well as the British pound and the euro. “We expect to add more currencies in the near future,” says the company’s homepage.
Crypto deals at record level – Bitcoin lull does not scare off investors
Entrepreneurs are not deterred by the price slump at Bitcoin. They sense a bargain. Despite the continuing bear market in the crypto sector, merger and acquisition activities have reached record levels, reports CNBC. On the one hand, activities among crypto companies and among companies targeting the underlying technology are on the rise.
Deals related to blockchain and crypto currencies increased by over 200 percent on an annual basis, according to data from PitchBook, produced by JMP Securities. So far, 115 transactions have been made with reference to crypto currencies or blockchain. 145 are to become it this year still. Last year there were only 47 deals. At that time, the Bitcoin price was almost 20,000 US dollars. Last it tended with 6.473 dollar.
Hong Kong Stock Exchange: Existing laws apply to Blockchain
According to the Hong Kong Stock Exchange, existing blockchain laws should apply. In an investigative report, chief economists at the Hong Kong Stock Exchange and the Innovation Lab investigated the potential of blockchain and AI in the financial sector.
Emerging technologies such as blockchain could be integrated “into areas of investment, trading, settlement and settlement,” the report says.
While different jurisdictions would apply to the technology in some cases, there must be a “consistent principle” in financial regulation. In other words, financial transactions of a similar nature should be subject to the same regulation. The principle of stability requires that the issuance of digital currencies and digital funds must be regulated within the existing regulatory framework.