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Bitcoin Could Be Supervised by Hong Kong Authority Following Bitfinex Hack, Says Expert

Last Updated March 4, 2021 4:50 PM
Rebecca Campbell
Last Updated March 4, 2021 4:50 PM

Following the recent hack at Hong Kong-based digital currency exchange Bitfinex, the Hong Kong Monetary Authority (HKMA) is considering whether or not to supervise the cryptocurrency, according to an expert.

CCN.com recently reported that around 120,000 bitcoins valued at approximately $65 million were stolen after a breach of security saw the bitcoin exchange shutting down its website. Now, though, it looks like the HKMA could shift its attention to bitcoin and how it’s regulated.

Speaking to Out-Law.com , Hong Kong-based technology law expert Paul Haswell of Pinsent Masons, said that the HKMA needs to turn its attention to the cryptocurrency market as more banks and financial institutions focus on investing in bitcoins.

He stated:

In a market like Hong Kong, where there is a growing appetite for bitcoins, but little to no education as to the risks associated with them, it may be time for regulation.

He further added that while the HKMA has in fact published guidelines regarding cybersecurity and the risks linked to cryptocurrencies, at present, it doesn’t have any control over bitcoin exchanges such as Bitfinex.

Of course, with the news of the Bitfinex hack that witnessed the price of bitcoin dropping with the bitcoin exchange suspending its platform trading, there may soon be a shift as to how cryptocurrencies are regulated in the future.

The Hack Investigation Continues

Of course, with the Bitfinex hack a topic of heated discussion that is likely to continue for a while, an update , from Zane Tackett, director of community for Bitfinex, may provide some hope to its users. He recently stated that while the investigation into the hack continues, they ‘understand exactly how relevant systems were compromised.’

Tackett added:

We have been working on getting the platform up and running on a secure instance so that users can log in and see if their accounts have been affected as well as the state of their positions and orders.

Featured image from Shutterstock.