Traders leave the crypto market or take short positions as the Chinese government plans to take military countermeasures. The rising tensions have led capital markets like stock and crypto assets to drop due to lower investor confidence.
The US-China tensions due to the upcoming visit of US House Speaker Nancy Pelosi to Taiwan put the crypto market under pressure again. In addition, the USD 300-million Ponzi scheme of Forsage and the USD 200-million stunt of Nomad have caused prices to drop.
A recent smart-contract upgrade allowed cybercriminals to steal almost USD 200 million from the token bridge of Nomad. Besides, the SEC indicted eleven people running the Forsage Ponzi scheme, which raised more than USD 300 million from investors.
Both events have affected the crypto market, as traders began to withdraw money or take short positions amid increased volatility.
According to a local media outlet, the Chinese government plans to take countermeasures, including military ones. The anticipated conflicts and escalation have caused traders to leave the market or take short positions as volatility increases.
The Tension between the United States and China Grows
Nancy Pelosi, the US House Speaker, plans to meet with South Korean, Singaporean, Taiwanese, Malaysian, and Japanese leaders. During her recent visit, the authorities from Singapore highlighted that stable US-China relations would guarantee regional peace and security.
After the visit of Pelosi to Taiwan, the United States and China have become increasingly tense. The Chinese government told the military not to keep silent, but American and Taiwanese armed forces were near the border.
The rising tensions have led capital markets, which include stock and cryptocurrencies, to drop. For example, the market capitalization of crypto markets fell by 3% due to falling investor confidence.
The New York Government Fines Robinhood USD 30 Million
Cryptocurrency-trading platform Robinhood must pay a USD 30 million fine to the New York State Department of Financial Services (NYDFS).
According to the Wall Street Journal, the NYDFS found significant flaws in how Robinhood managed compliance plans.
The NYDFS said Robinhood had inadequate staff to comply with the Bank Secrecy and Anti-Money Laundering Act. In addition, the platform did not significantly upgrade its transaction monitoring method to adapt to developing size, trading volume, and consumer profile.
Robinhood also received an accusation of following policies inconsistent with the NYDFS cybersecurity and virtual currency rules. The regulator pointed out that the platform lacks a telephone contact line for consumer complaints, making consumer safety insufficient.
The NYDFS found these shortcomings thanks to a filing by Robinhood with the US Securities and Exchange Commission (SEC) in 2021. The brokerage initially had to pay a USD 10 million fine, but that expectation rose to USD 30 million.
The latest agreement indicates that the NYDFS will begin enforcement action in the cryptocurrency sector. According to Adrienne A. Harris, the director of the NYDFS, they will continue to investigate and take action. She stated that combating the violation of departmental regulations is critical to protecting users and ensuring the security and robustness of their organization.
By Alexander Salazar