This weekly roundup of stories from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the business’s most vital information, together with influential initiatives, modifications within the regulatory panorama, and enterprise blockchain integrations.
It has now been two months because the 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 stage. The newest instance was from the Anhui provincial authorities, because it introduced a set of measures to cut back vitality 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 probably different provinces, significantly ones that depend on coal for vitality, can have related bulletins over the summer time because the central authorities pushes for a carbon-neutral future.
On July 13, Chinese language mining pool big Bit Mining introduced it had raised $50 million for enlargement 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 mild of the restrictions at dwelling, as a substitute selecting to relocate the info facilities and mining machines overseas.
The disappearing business 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 gave the impression to be an ethnic minority holding a bundle of mining gear and energy cables like a flower bouquet.
Going for gold?
Former Bitmain CEO Jihan Wu believes that the mining laws will profit the business over the long-term, citing an improved public picture and eradication of unhealthy actors. It’s actually a pleasant thought, however in the mean time, China appears extra intent on eliminating all actors, not simply the unhealthy ones.
With the upcoming Winter Olympics in February of 2022 looming, Beijing can have the proper alternative to point out off clear blue skies and clean-energy industries. On prime of that, China can showcase its state-of-the-art central financial institution digital foreign money, with out the confusion stemming from extra speculative digital belongings 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 towards know-how and social unrest previous to that landmark occasion.
Lowest volumes in years
The influence is being felt by main exchanges in China. Huobi’s BTC/USDT pair noticed solely 109K BTC transacted up to now week, the bottom weekly quantity courting again to October of 2018. World exchanges have been additionally affected by slumping volumes, however to not the diploma as these predominately Chinese language exchanges. In right now’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 introduced it was working with OKLink to fight cash laundering. OKLink is a blockchain know-how agency that has ties to OK Group, an organization that used to handle main alternate OKex. With alternate management beneath unimaginable scrutiny in 2021, there is no such thing as a shock in seeing makes an attempt to placate regulators.
On July 15, cryptocurrency media firm Bishijie introduced it was shutting down after violating nationwide legal guidelines towards cryptocurrency. Bishije, which interprets to Coin World, had loved a number of reputation in 2018, previous to the depths of the final bear market cycle. This latest bull cycle by no means noticed it absolutely recuperate it’s earlier place nonetheless, making this solely a minor loss for the present cryptocurrency area. It stays to be seen whether or not different media platforms primarily based within the mainland can survive this making an attempt time frame.