US to tighten noose on crypto trade

Financial authorities in the United States are signaling a more active role in regulating the US$1.5 trillion (HK$11.7 trillion) cryptocurrency market, Financial Times reported.

In an interview with the Financial Times, Michael Hsu, who was installed this month as acting comptroller of the currency, said he hoped US officials would work together to set a "regulatory perimeter" for cryptocurrencies.

"It really comes down to co-ordinating across the agencies," said Hsu, who heads the Treasury Department bureau that oversees national banks. "Just in talking to some of my peers, there is interest in co-ordinating a lot more of these things."

Cryptocurrency ethereum extended gains to rise more than 8 percent yesterday to US$2,587 but remained 40 percent below a record high of above US$4,300 hit earlier this month. At 7.53pm, it was trading up 7.4 percent at US$2,565.69.

Larger rival bitcoin also gained in its wake with the world's biggest cryptocurrency rising 3.7 percent to US$36,977 in quiet trading with London and US markets shut for holidays.

The rising popularity of cryptocurrencies such as bitcoin is "of great concern," according to Derville Rowland, one of the top officials at Ireland's central bank.

However, Chinese investors are paying little heed to the government's biggest crackdown on cryptocurrency trading since 2017, underscoring the challenge for Beijing as it tries to rein in a speculative boom in digital assets.