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00:00We know that China has been taking steps in this direction butthis is incredibly dramatic. I mean what is your take on this. What does this mean for even a company like Falcon X.Sure so. You know I think China has been banning the currency for a number of years now first in 2013 2017. This is not thefirst time they've done so this year. And for an authoritarian regime that's trying to promote their digital one. And keepingin mind that the China national holiday is next week. Their crackdown on crypto is what I would really align with SenatorPat Toomey a big opportunity for the United States and a reminder of our structural advantage over China in terms of justwhat we've seen historically to what Ed mentioned. This definitely wasn't as large of a move as we've seen prior timesand market movements. We see a red candlestick down and panic initially followed by quick buyback and market recovery for BTClargely by side led by Asia based hedge funds and for US institutions across a number of personas. And for eith we'reseeing a much larger hit with a much slower buyback driven by proprietary funds. Who are the winners and losers here. And ifyou could get into some coin specifically you know that would certainly help us better understand the situation.Yeah that's a really really good question. You know I think what we were seeing it was. You know a slower last two monthshistorically for us on the volume side. We saw it seven times more volume today than we have seen across a number of weekswhere we had a lot of conferences both in traditional finance and cryptocurrency layer ones are definitely top of mind. I knowyou've spoken you know about layer ones historically in the past you know experience but also things like Avalanche Solana Adamas well as Luna in addition to Bitcoin and then some tokens outside of that primarily looking at renewed interest in some ofthe play to earn tokens like a Y G G or DAX Infinity. And you know China is saying they're going to investigate anyone workingfor overseas cryptocurrency exchanges as well. Would any Falcon ex employees fall under that umbrella. I mean what does thismean for your employees in the way that you operate as a company.Yes so. Falcon. Today we do have offices in the US as well as our Asia office in India. So not a direct impact to our businessbut I think that's definitely top of mind for for any business that may have any employees sitting in in China. As youmentioned. Now if you know obviously this is happening in Asia which whichwhich used to be sort of the center of crypto innovation we're preparing for tougher regulation here in the United States.We're preparing for tougher regulation on crypto in Europe. If that's the case and you see a broad based crackdown then wheredo you think the growth is going to come from. Yeah that's a really good question. I think you know if we usejust China mining as an example of this we saw China banned mining and we actually saw a number of those miners come intothe United States. So hash rate is almost 70 percent of what it was prior to the ban. So we've almost has a full comeback fromthat. And a lot of the miners today are in the US. And so we really saw that innovation come to the United States. And againgoing back to that really an opportunity for the US to show that we're at the forefront of working with this industry to sparkinnovation. I think across the board everyone's trying to protect consumers. That is top of mind for any company in thisspace. How do we do so without stifling innovation.

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China Bans All Crypto Transactions

Aya Kantorovich, FalconX Head of Institutional Coverage, joins Emily Chang to talk about China’s decision to consider all crypto-related transactions as illicit financial activity. (Source: Bloomberg)

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