FTX Crypto Exchange Relocates from Hong Kong Over Tight Regulatory Measures

FTX Crypto Exchange Relocates from Hong Kong Over Tight Regulatory Measures

Word has been spread that popular crypto derivatives trading venue FTX has relocated from Hong Kong to warm and sunny Nassau (capital of Bahamas) as they are more friendly to crypto-related businesses than authorities of HK.

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

Another important news is that FTX announced that its headquarters has moved from Hong Kong and moved to Nassau, the capital of the Bahamas, because its regulatory environment is more friendly than Hong Kong.— Wu Blockchain (@WuBlockchain) September 24, 2021

FTX sets up legal presence in Bahamas in advance

On September 20, a press release came out, saying that a subsidiary of FTX, FTX Digital Markets had received 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.

China makes another big crackdown on crypto

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

The Central Bank of China (PBOC) has announced all crypto transactions illegal and banned them from circulating in 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 a major asset managing firm VanEck, believes that such negative stance on crypto will force Chinese investors to relocate a great deal of their capital from Asia to Western countries.

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