China Crypto Roundup (Nov 2- Nov 9): Hong Kong Amends Crypto Law to Regulate All Exchanges, Huobi COO Reportedly Under Investigation, Bitcoin Cash Faces New Hard Fork on November 15
The top stories from the Chinese cryptocurrency sphere this past week include: Hong Kong’s securities watchdog to regulate all crypto trading platforms, Huobi Chief Operating Officer under investigation, BCH to hard fork on November 15.……
Hong Kong’s Securities watchdog to regulate all crypto trading platforms
Speaking on one day before the announcement, Xu Zhengyu, the Secretary for Financial Services and the Treasury Bureau of Hong Kong disclosing the plans on the law amendment of Hong Kong SAR government.
The government planned to release a consultation paper on Tuesday afternoon to collect views on the proposed new rules, which aim to offer investors better protection by combating fraud and money laundering.
Earlier this year, Hong Kong has approved the launch of its first crypto exchange. The Securities and Futures Commission (SFC) gave its approval to OSL Digital Securities to begin offering cryptocurrency services in the region.
The move seems to be a part of the commission’s efforts to extend its previous approach. According to reports, OSL, which is backed by US-based investment giant Fidelity, applied for a license last year when Hong Kong amended its rules and regulations to allow crypto exchanges to operate in the country.
Huobi COO Reportedly Under Investigation
Chinese media Weibo reports that Robin Zhu, COO of the famous Huobi cryptocurrency exchange, has been booked for investigation for illegal activities related to cryptocurrency.
As one of the most prominent Singapore-based cryptocurrency exchanges, Huobi may the latest target for Chinese authorities cracking down on crypto exchanges, and it is feeling crypto investor jitters.
Huobi’s native token – HT’s price saw a steep depreciation coinciding with the news of the exchange’s execs. Over the previous day, HT was down by more than 16%. On the brighter side, the token resumed a mild uptrend as Huobi posted its clarification on the issue, following which HT noted a minor uptick to $3.81. At around midnight, Twitter accounts that monitor whale activity, or large cryptocurrency transactions, reported that about $400 million worth of the stablecoin Tether had moved to Huobi.
Jun Du, the former co-founder of Huobi allegedly noted that all user assets were safe and that everything was operating fine. The exchange also said that Zhu is on a business trip and he was unavailable for any further comments.
BCH faces new hard fork on November 15
A major event is coming in the Bitcoin Cash (BCH) expectedly on the 15 Nov 2020 called as hard fork. Once again the community becomes oppose to the consenses between miners and developers, so again hard forking the BCH blockchain and slipping into a new chain will occur to distribute another BCH forked copy to the holders of parent BCH.
Huobi and OKEx now show support for BCH fork. Judging from the announcement of the two exchanges, the ability to inherit the name of BCH will depend on the two opponents BCHA or BCHN who has a higher price. Although Bitcoin Cash is defined by a single protocol, the implementation of each client following the protocol depends on different independent teams.
But now BCH fork has great uncertainty, there exists high risk in trading or investing in fork futures token. If a blockchain lacks the support of miners, it may not survive, and the relevant token price will dump to zero. Actually, the developer team of BCH is working on the project without any direct regular incentive of financial benefit therefore it impacts the project competency and long performance growth.
New Infrastructure funding plan IFP introduces by the Bitcoin ABC community to implement in the BCH blockchain system to incentivize directly the developers of the project for sustainable and competent growth of Bitcoin Cash.