Fiji Central Bank Cautions Against Crypto Usage; Hong Kong Approves Bitcoin, Ether ETFs
Summary:
Fiji's central bank warns citizens about potential risks of using cryptocurrencies for transactions and investments, seemingly contradicting the pro-Bitcoin stance of the country's Prime Minister. Meanwhile, Hong Kong regulators have approved spot Bitcoin and Ether ETFs for at least three local entities. Additionally, Bitcoin miners might discharge approximately $5 billion in Bitcoin after the halving, potentially leading to a stagnation in prices for the coming months.
The Reserve Bank of Fiji has cautioned citizens about the risks and potential criminal penalties associated with using cryptocurrencies for transactions and investment. In other global crypto news, Hong Kong is now welcoming spot crypto exchange-traded funds (ETFs) for Bitcoin and Ether. Meanwhile, speculation is rife that Bitcoin miners might shed as much as $5 billion worth of Bitcoin in the months following the impending halving, potentially causing distress to other coin markets.
In a surprising move that seemingly contradicts the country’s Prime Minister's stance on digital assets, Fiji's central bank has demonstrated caution, pointing out an increase in cryptocurrency advertising locally. The bank's governor, Mr. Ariff Ali has noted the proliferation of crypto investment schemes throughout Fiji. As of now, no entities or individuals are officially licensed to offer cryptocurrency investments in Fiji.
Strikingly, Fiji’s Prime Minister, Sitiveni Rabuka, appeared to be supporting Bitcoin as of December 2022. Still, the RBF's sweeping ban on cryptocurrencies appears to agree with the advice from the International Monetary Fund, which in February warned Pacific Island nations about the risks and limitations of cryptocurrencies.
Meanwhile, in Hong Kong, spot Bitcoin and Ether ETFs have received approval. Regulators have granted permission to at least three local entities, including Hong Kong divisions of Harvest Fund Management, Bosera Asset Management, and China Asset Management. These entities are set to launch their spot Bitcoin and Ether ETFs shortly.
According to Markus Thielen, head of research at 10x Research, the Bitcoin market should brace itself for a potential large-scale liquidation of $5 billion worth of Bitcoin by miners following the halving event. This prediction is based on similar events in previous cycles, suggesting this could lead to Bitcoin prices stagnating over the next several months.
The upcoming Bitcoin halving event is set to occur in roughly six days. However, if the past is any indication, significant market gains might only start to manifest around October.
Published At
4/15/2024 11:36:53 PM
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