Adam James · February 12, 2018 · 6:30 pm

Bitcoin futures investors in Hong Kong are turning clear of the self sufficient territory’s unregulated cryptocurrency exchanges, flocking as a substitute to regulated US markets. Safety First December noticed the release of Bitcoin futures on each the CBOE and CME. Since then, buying and selling quantity has ceaselessly higher as investors in Hong Kong flip their backs on their much less safe home exchanges in desire of regulated US markets. TD Ameritrade CEO Gary Leung claims his is one such company

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Bitcoin futures investors in Hong Kong are turning clear of the self sufficient territory’s unregulated cryptocurrency exchanges, flocking as a substitute to regulated US markets.


Safety First

December noticed the release of Bitcoin futures on each the CBOE and CME. Since then, buying and selling quantity has ceaselessly higher as investors in Hong Kong flip their backs on their much less safe home exchanges in desire of regulated US markets.

TD Ameritrade CEO Gary Leung claims his is one such company experiencing higher hobby in Bitcoin futures popping out of Hong Kong, explaining to the South China Morning Post:

We have won a large number of inquiries about Bitcoin futures since we began working in Hong Kong ultimate October, when the costs had been surging.

TD Ameritrade

This newfound hobby in American exchanges for Bitcoin futures stems in large part from the truth that the Hong Kong Monetary Authority perspectives the cryptocurrency as a commodity, and thus does now not keep an eye on it.

Benny Mau, managing director at China Securities International Finance Holdings, defined to the South China Morning Post:

Bitcoin and different virtual currencies are mainly now not regulated in Hong Kong as a result of they’re traded like commodities. If the virtual foreign money platforms have an issue or are hacked, the buyers would possibly undergo losses since the regulators may now not do the rest for them. This has discouraged many Hong Kong buyers from buying and selling virtual currencies in Hong Kong.

Instead, Hong Kong buyers taking a look to make the most secure trades conceivable are using US exchanges, since “investors do not need to think about the counterparty risk or worry about the platforms having a problem.”

CBOE Announces Increased Bitcoin Futures Margins Amid Market Manipulation Worries

According to Gary Cheung, chairman of the Hong Kong Stockbrokers Association, Bitcoin futures buying and selling within the US isn’t restricted to a selected subset of Hong Kong investors. Rather, there are two varieties of Hong Kong buyers who industry Bitcoin futures in America:

There are bitcoin miners and different buyers who industry bitcoin and need to use the futures merchandise to hedge. The others are customary futures buyers who purely need to take benefit created by way of speculative futures buying and selling.

Both varieties of buyers have to this point made it abundantly transparent — in terms of making an investment in Bitcoin futures, legislation is noticed as considerably extra horny than unregulated markets.

What are your ideas on Bitcoin futures buying and selling on American markets? Let us know within the feedback under!


Images courtesy of Bitcoinist archives.

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