News of HK legalizing crypto exchanges censored by state media after just two days, meanwhile, Multichain token plunges after police arrest rumors.
1. Hong Kong legalizes crypto exchanges but state media censors the news after two days: On November 6, 2020, the Hong Kong government announced that it had passed a new law to regulate cryptocurrency exchanges. The law required all exchanges to be licensed by the Securities and Futures Commission (SFC) and comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. However, just two days after the announcement, state media in China censored the news, leading to speculation that the move was part of a wider crackdown on cryptocurrency.
2. Multichain token plunges after police arrest rumors: On November 9, 2020, rumors began circulating on social media that the founder of Multichain, a blockchain platform that allows users to create their own tokens, had been arrested by police. The rumors caused panic among investors, and the price of Multichain’s token plunged by over 60%. However, the company denied the rumors, stating that its founder was “safe and sound” and that there had been no arrests.
Summary: The news of Hong Kong legalizing crypto exchanges was short-lived as state media in China censored the announcement just two days later. Meanwhile, rumors of an arrest of the founder of Multichain caused panic among investors and led to a significant drop in the price of its token. These events highlight the volatility and uncertainty that still surrounds the cryptocurrency industry, despite efforts by governments and companies to regulate and stabilize it.