regime – Coin Network News https://coinnetworknews.com If it's coin, it's news. Tue, 16 May 2023 09:28:02 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 Bitcoin-Ether Correlation Hits Lowest Level Since 2021, Hints at Regime Change in Crypto Market https://coinnetworknews.com/bitcoin-ether-correlation-hits-lowest-level-since-2021-hints-at-regime-change-in-crypto-market/ https://coinnetworknews.com/bitcoin-ether-correlation-hits-lowest-level-since-2021-hints-at-regime-change-in-crypto-market/#respond Tue, 16 May 2023 09:28:02 +0000 https://coinnetworknews.com/bitcoin-ether-correlation-hits-lowest-level-since-2021-hints-at-regime-change-in-crypto-market/

Ether, in the past, has decoupled from bitcoin for brief periods. The latest weakening of correlation may be long-lasting, meaning bitcoin, the world’s largest and most liquid digital asset, may no longer anchor ether and the broader market, according to Pulkit Goyal, Vice President of trading at OrBit Markets, an institutional liquidity provider of options and structured derivatives in digital assets.

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]]> https://coinnetworknews.com/bitcoin-ether-correlation-hits-lowest-level-since-2021-hints-at-regime-change-in-crypto-market/feed/ 0 ‘Ambiguous Foreign Exchange Regime’ Blamed After Inflows Dropped to $5.32 Billion in 2022 – Africa Bitcoin News https://coinnetworknews.com/ambiguous-foreign-exchange-regime-blamed-after-inflows-dropped-to-5-32-billion-in-2022-africa-bitcoin-news/ https://coinnetworknews.com/ambiguous-foreign-exchange-regime-blamed-after-inflows-dropped-to-5-32-billion-in-2022-africa-bitcoin-news/#respond Wed, 12 Apr 2023 10:11:20 +0000 https://coinnetworknews.com/ambiguous-foreign-exchange-regime-blamed-after-inflows-dropped-to-5-32-billion-in-2022-africa-bitcoin-news/

Between 2019 and 2022, the value of foreign capital that flowed into Nigeria dropped from $23.9 billion to $5.32 billion. The drop has been attributed to low investor confidence, the high cost of doing business, as well as the country’s high inflation rate. Nigeria will “struggle to keep the naira to the dollar exchange rate from depreciating further” until both crude oil and non-oil exports are boosted, an accounting firm has asserted.

Nigeria’s High Cost of Doing Business

In its latest report on the flow of foreign capital into Nigeria, the accounting firm KPMG said the value of capital brought into the West African country fell from $23.9 billion recorded in 2019, to $5.32 billion in 2022. According to the report, the persistent decline in the amount of capital flowing into Nigeria can be attributed to “low investor confidence due to the ambiguous foreign exchange regime.”

The challenges encountered when seeking to access foreign exchange as well as Nigeria’s high inflation rate and interest rates are listed as some of the factors that contributed to the “precipitous decline” in foreign capital flowing into the country. Besides the country’s ongoing foreign exchange woes, the report said Nigeria’s failure to lower the cost of doing business makes it a less-than-ideal foreign investment destination.

“Beyond the rigidity and lack of clarity in the FX [foreign exchange] management system, other factors have discouraged Foreign Direct Investment and capital inflow, in general, such as security challenges, ease of doing business issues particularly as it relates to the infrastructure deficit, overly stringent policies and bureaucratic bottlenecks for securing permits and a perceived weak legal framework, which make it expensive to do business in Nigeria are contributing to the reasons foreign investors are avoiding bringing their capital into the country,” the report explained.

Widening Forex Supply Gap

The report also suggested that the suspense created by the recently held national elections may have contributed to the drop in the value of foreign capital flowing into Nigeria. The slowdown in the value of capital flowing into Nigeria has contributed to the widening of the forex supply gap.

Meanwhile, the KPMG report ends by stating that Nigeria will likely “struggle to keep the naira to the dollar exchange rate from depreciating further” unless both crude oil and non-oil exports are boosted.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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]]> https://coinnetworknews.com/ambiguous-foreign-exchange-regime-blamed-after-inflows-dropped-to-5-32-billion-in-2022-africa-bitcoin-news/feed/ 0 Justin Sun Says Hong Kong’s New Licensing Regime Could Shift Policy in Mainland China, Eventually https://coinnetworknews.com/justin-sun-says-hong-kongs-new-licensing-regime-could-shift-policy-in-mainland-china-eventually/ https://coinnetworknews.com/justin-sun-says-hong-kongs-new-licensing-regime-could-shift-policy-in-mainland-china-eventually/#respond Wed, 01 Mar 2023 21:21:33 +0000 https://coinnetworknews.com/justin-sun-says-hong-kongs-new-licensing-regime-could-shift-policy-in-mainland-china-eventually/

Sun thinks China is looking at Hong Kong as a kind of experiment, to see if crypto can be regulated on the mainland. If Hong Kong suceeds it could create a change of attitude in Beijing. “So that’s why they want to see Hong Kong do it first,” he said. “And then you see the result. If it has positive feedback, they might change the policy in mainland China as well.”

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]]> https://coinnetworknews.com/justin-sun-says-hong-kongs-new-licensing-regime-could-shift-policy-in-mainland-china-eventually/feed/ 0 Hong Kong outlines upcoming crypto licensing regime https://coinnetworknews.com/hong-kong-outlines-upcoming-crypto-licensing-regime/ https://coinnetworknews.com/hong-kong-outlines-upcoming-crypto-licensing-regime/#respond Mon, 20 Feb 2023 09:41:24 +0000 https://coinnetworknews.com/hong-kong-outlines-upcoming-crypto-licensing-regime/

Hong Kong’s Securities and Futures Commission (SFC) calls for public feedback on its newly proposed licensing regime for cryptocurrency exchanges set to take effect from June 2023.

A key consideration of the public consultation window is whether to allow licensed exchanges to serve retail investors in the country and what measures should be implemented to provide a range of “robust investor protection measures.“

The SFC announced the consultation process on Feb. 20, outlining a new licensing regime for the industry which proposes that all centralized cryptocurrency trading platforms operating in Hong Kong must be licensed with the regulatory body.

The SFC’s proposed regulatory guidelines are based on existing requirements for licensed securities brokers and automated trading venues, while modifications have been made to some of the existing prerequisites.

A statement from SFC CEO Julia Leung highlighted the “recent turmoil” in the cryptocurrency ecosystem and the collapse of industry players like FTX as a primary reason for clear regulatory guidelines for the industry with investor protection top of mind:

“As has been our philosophy since 2018, our proposed requirements for virtual asset trading platforms include robust measures to protect investors, following the ‘same business, same risks, same rules’ principle.”

According to the announcement, any person or business providing cryptocurrency-related services must apply for a license from the SFC. Furthermore, a number of requirements are set out for cryptocurrency exchanges and service providers.

This includes a host of prerequisites, including the safe custody of assets, Know Your Customer, conflicts of interest, cybersecurity, accounting and auditing, risk management, Anti-Money Laundering/counter-financing of terrorism and prevention of market misconduct.

Related: Hong Kong watchdog aims to restrict retail traders to liquid products

Businesses that intend to continue operating and applying for a license are encouraged to review and revise existing systems and controls to meet the requirements of the upcoming regime. Exchanges and service providers that do not intend to apply for a license will have to prepare to close down their businesses in Hong Kong.

Hong Kong’s SFC also intends to publish and maintain a list of licensed cryptocurrency exchanges and service providers to inform the general public of the registration statuses of different firms.

As previously reported by Cointelegraph, Hong Kong-based financial service providers had begun to enquire about licensing requirements after an amendment to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance in December 2022.