This weekly round of news from Mainland China, Taiwan and Hong Kong seeks to curb the industry’s most important news, including impressive projects, changes in the regulatory landscape, and enterprise blockchain integration.
China Rules, FACT or FUD?
Generally, this weekly column provides a comprehensive look at all the developments, news and even gossip within China. This week, most subjects left behind the news that there had been another rift in the industry, threatening to plunge the markets into a full-blown bear market.
It was all fun and games until a decision was made from above. Liu He, China’s deputy prime minister and a member of the almighty eight-man Politburo, led a meeting on preventing and controlling financial risks. Between decisions There was an crackdown on bitcoin mining and trading activities, Dagging the hearts of anyone hoping to see a more open regulatory environment. There were immediate indications that the ruling with Inner Mongolia province would not be taken lightly Setting up a Reporting Hotline To drive out those who disobeyed the order.
BTC.TOP is one of the largest mining pools in the world, reporting 2.5% of the global hash rate, which is quickly followed Announcing that it was shutting down operations. This did not stop BTC.TOP founder Jiang Zhuo from moving to the micro-blogging platform Weibo. Announce that bitcoin is a tool that China can use To break the US dollar monopoly in international trade.
Western pundits scramble for answers
China’s role in the mining community has been a major source of distrust between East and West, with some bitcoiners claiming that China’s potential control over the mining community could threaten the chain’s ability to remain fully decentralized. As a result some celebrated the news of the ban, thinking that the mining community would become more fragmented. However, just because China is banning operations, it does not mean that Chinese companies will lose their dominant position in the industry. As Dowy Wan, the primitive capital partner pointed out, Many miners are just packing and moving out of the country. Registering and baseing your operations in areas such as the US, Kazakhstan or even Africa will not really prevent mining BTC from being related to Chinese miners, making it harder to actually track the centralization of the network Will give.
Exchange and trading platforms have not been much affected so far. In 2017, when the exchanges were first targeted by regulations, the impact was immense as several major exchanges were registered in China. Nowadays, platforms are domiciled in all other countries, have offshore servers, and cater to a much more diverse user base. Local authorities will have little interest in intervening in these actions, as the impact on Chinese society is much less pronounced. Huobi Temporarily suspended futures trading For Chinese users, but this does not appear to be any permanent change in the way they work. Futures platform buybit It turned out that they were closing accounts Registered with Chinese phone numbers as of June 15, but since most of their users are non-Chinese, the negative impact will be far less than the risk that they will continue to serve Chinese users.
Have your cake and eat it too
This seems like a win-win situation for China as it can get closer to its carbon neutral targets by reducing the amount of bitcoin mines. Additionally, it is also strengthening eCNY as the country’s only digital asset. Finally, profits from mining and exchanges will probably still return to the mainland, as exchanges and offices of mining operations are unlikely to follow hardware out of the country.
Don’t forget about hong kong
Hong Kong is announcing measures with its ban on retail cryptocurrency trading that would set a minimum limit of approximately $ 1 million on investment. Hong Kong Financial Services and Treasury Secretary Christopher Hui, Requirements defended Saying that they believe they protect investors, prevent market manipulation, and prevent money laundering and terrorist financing. The decision will certainly make it easier to track cryptocurrency in the Special Administrative Region and make it harder for citizens in mainland China to circumvent the rules.