This weekly roundup of news from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the business’s most necessary news, together with influential initiatives, modifications 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 are now just the trickling down of earlier nationwide insurance policies being enforced at a provincial stage. The most recent instance was from the Anhui provincial authorities, because it introduced a set of measures to scale back vitality consumption, with cryptocurrency mining listed among the many culprits. Anhui is a small province east of Shanghai, extra identified for its scenic rural panorama and agriculture than its contributions to the financial improvement of China. It’s possible different provinces, notably ones that depend on coal for vitality, may have related bulletins over the summer time because the central authorities pushes for a carbon-neutral future.
On July 13, Chinese language mining pool large Bit Mining introduced it had raised $50 million for enlargement outdoors of China. The corporate is listed on Nasdaq and operates BTC.com, which is at the moment a prime 5 pool for Bitcoin, Bitcoin Money, and Litecoin. That is one other signal that Chinese language mining firms aren’t giving up in gentle of the restrictions at dwelling, as an alternative selecting to relocate the information facilities and mining machines overseas.
The disappearing business left a path of spectacular images, 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 rules will profit the business over the long-term, citing an improved public picture and eradication of bad actors. It’s definitely a pleasant thought, however for the time being, China appears extra intent on eliminating all actors, not just the bad ones.
With the upcoming Winter Olympics in February of 2022 looming, Beijing may have the proper 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 that may seem to have similarities on the floor. These with first hand reminiscences of the 2008 Summer season Olympics can also keep in mind the strict regulation in opposition to 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. International exchanges had 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 doubt that exchanges proactive in decentralizing operations and danger are higher poised to attenuate injury 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 below unimaginable scrutiny in 2021, there isn’t 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 laws in opposition to cryptocurrency. Bishije, which interprets to Coin World, had loved a whole lot of recognition in 2018, previous to the depths of the final bear market cycle. This latest bull cycle by no means noticed it absolutely get well 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 based mostly within the mainland can survive this making an attempt time frame.