Another country winked at the cryptocurrency ban – What will be the impact on the market?

Recently, China’s announcement that it is expanding its ban on cryptocurrency-related transactions and businesses has had a devastating effect on the market.. Now, claims that another country will ban or restrict cryptocurrencies are met with concern.

After China, another country is considering a crypto ban

Breaking news, Hong Kong securities regulator may be empowered to impose a ban on licensed crypto service providers.

Chinese media outlet 8BTC reports that the Hong Kong government is considering the option to ban cryptocurrencies.. 8BTC states on Twitter that the task of enforcing the ban will be entrusted to Hong Kong’s official financial regulator, the Securities and Futures Commission.. According to this new news, the institution in question may impose bans or restrictions on licensed companies that provide services related to cryptocurrencies.

The same may be true for similar and related institutions.. 8BTCnews says on Twitter:

“Last Minute! The HongKong government has proposed authorizing the Securities and Futures Commission to restrict or ban the transactions of licensed virtual asset service providers and their associated entities as needed.”

Hong Kong will ban licensed crypto businesses allegation

Overall, starting and operating an unlicensed cryptocurrency business in Hong Kong faces approximately $650,000 (Hong Kong dollars 5 million) and seven years in prison.. If the same crime continues to be committed, there is an additional HK$100,000 penalty per day.

Licensed crypto transactions can now be banned as well.

Related – The bans failed to stop people from buying cryptocurrencies

How does it affect the market?

The latest news about China’s cryptocurrency ban has turned the cryptocurrency market into a bloodbath.. Cryptocurrency banned in China. Three Chinese financial institutions have announced that they are expanding the ban on cryptocurrencies.. Above this, Bitcoin, which was around $ 40,000, lost about $ 10,000. There is an average of 30 percent depreciation across the market.

The fact that Hong Kong has imposed a similar ban raises concerns that a similar collapse may occur in the market. The crypto market has not experienced such a decline since the Covid-19 crash in March 2020.

Related – The bitter prescription of the market crash for crypto billionaires

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