This weekly roundup of stories from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the trade’s most vital information, together with influential tasks, adjustments within the regulatory panorama, and enterprise blockchain integrations.
It has now been two months for the reason that crypto crackdown and subsequent enforcement started. Most new tales at the moment are simply the trickling down of earlier nationwide insurance policies being enforced at a provincial degree. The most recent instance was from the Anhui provincial authorities, because it announced a set of measures to scale back power consumption, with cryptocurrency mining listed among the many culprits. Anhui is a small province east of Shanghai, extra recognized for its scenic rural panorama and agriculture than its contributions to the financial growth of China. It’s seemingly different provinces, significantly ones that depend on coal for power, can have comparable bulletins over the summer season because the central authorities pushes for a carbon-neutral future.
On July 13, Chinese language mining pool large Bit Mining announced it had raised $50 million for growth exterior of China. The corporate is listed on Nasdaq and operates BTC.com, which is at present a prime 5 pool for Bitcoin, Bitcoin Money, and Litecoin. That is one other signal that Chinese language mining corporations aren’t giving up in gentle of the restrictions at residence, as a substitute selecting to relocate the information facilities and mining machines overseas.
The disappearing trade left a path of spectacular pictures, together with some revealed by Monetary media Caixin. One picture that grabbed the eye of social media depicted a lady who seemed to be an ethnic minority holding a bundle of mining tools and energy cables like a flower bouquet.
Going for gold?
Former Bitmain CEO Jihan Wu believes that the mining laws will profit the trade over the long-term, citing an improved public image and eradication of dangerous actors. It’s definitely a pleasant thought, however in the mean time, China appears extra intent on eliminating all actors, not simply the dangerous ones.
With the upcoming Winter Olympics in February of 2022 looming, Beijing can have the right alternative to indicate off clear blue skies and clean-energy industries. On prime of that, China can showcase its state-of-the-art central financial institution digital forex, with out the confusion stemming from extra speculative digital property which may seem to have similarities on the floor. These with first hand recollections of the 2008 Summer season Olympics may keep in mind the strict regulation in opposition to expertise and social unrest previous to that landmark occasion.
Lowest volumes in years
The affect is being felt by main exchanges in China. Huobi’s BTC/USDT pair noticed solely 109K BTC transacted prior to now week, the bottom weekly quantity relationship again to October of 2018. International exchanges have been additionally affected by slumping volumes, however to not the diploma as these predominately Chinese language exchanges. In at this time’s regulatory local weather, there’s little question that exchanges proactive in decentralizing operations and threat are higher poised to attenuate harm from unfavorable insurance policies.
Working collectively for compliance?
On July 13, the Nanjing Public Safety Analysis Institute announced it was working with OKLink to fight cash laundering. OKLink is a blockchain expertise agency that has ties to OK Group, an organization that used to handle main trade OKex. With trade management below unbelievable scrutiny in 2021, there isn’t a shock in seeing makes an attempt to placate regulators.
On July 15, cryptocurrency media firm Bishijie announced it was shutting down after violating nationwide legal guidelines in opposition to cryptocurrency. Bishije, which interprets to Coin World, had loved quite a lot of recognition in 2018, previous to the depths of the final bear market cycle. This current bull cycle by no means noticed it absolutely get better it’s earlier place nonetheless, making this solely a minor loss for the present cryptocurrency house. It stays to be seen whether or not different media platforms primarily based within the mainland can survive this making an attempt time period.