Banks, investment firms, and pension funds are becoming increasingly hesitant to invest in cryptocurrency due to the collapse of FTX, increased regulatory scrutiny, and a lack of clarity. US regulators, including the Federal Reserve, Treasury Department, and FDIC, closed three major crypto-friendly banks, triggering a banking crisis. The Metropolitan Commercial Bank has terminated most of its cryptocurrency-related services, and Canada's Ontario Teachers' Pension Plan has decided to move away from the crypto market after writing off a $95 million investment in FTX. Crypto exchanges such as Coinbase, Kraken, and Binance are seeking to move offshore amid regulatory crackdowns led by the US SEC, with some firms believing that Hong Kong can become a major crypto hub.

(By Varinder Singh)