Encrypted media is closed and bad news is repeated. Is mining law beneficial?

This weekly news summary from China, Taiwan, and Hong Kong attempts to plan the most important news in the industry, including influential projects, changes in the regulatory environment, and enterprise blockchain integration.

It has been two months since the start of the cryptocurrency crackdown and subsequent enforcement. Most new stories are now just a trickle of early state policies implemented at the provincial level.The latest example comes from the Anhui Provincial Government because it Announced a series of measures In order to reduce energy consumption, cryptocurrency mining is listed as the culprit. Anhui is a small province east of Shanghai. It is known for its scenic rural landscape and agriculture, not its contribution to China’s economic development. As the central government promotes a carbon-neutral future, other provinces, especially those that rely on coal for energy, may issue similar announcements in the summer.

On July 13, Chinese mining pool giant Bit Mining Announced that $50 million has been raised Used for expansion outside of China. The company is listed on Nasdaq and operates BTC.com, which is currently the top 5 mining pools for Bitcoin, Bitcoin Cash and Litecoin. This is another sign that Chinese mining companies have not given up due to domestic restrictions, but chose to move data centers and mining machines abroad.

The disappearing industries have left impressive photos, some of which were published by financial media CaixinA picture that caught the attention of social media depicts a woman who appears to be an ethnic minority, holding a bunch of mining equipment and power cables in her hand, like a bunch of flowers.

Going to pan for gold?

Wu Jihan, the former CEO of Bitmain, believes that in the long run, mining regulations will benefit the industry. Cite improved public image And eradicate bad actors. This is certainly a good idea, but at present, China seems to be more inclined to eliminate all participants, not just the bad guys.

With the upcoming Winter Olympics in February 2022 approaching, Beijing will have an excellent opportunity to showcase the blue sky and clean energy industry. Most importantly, China can display its most advanced central bank digital currency without being confused by more speculative digital assets, which may seem similar on the surface. Those with first-hand memory of the 2008 Summer Olympics may remember the strict supervision of technological and social turmoil prior to that landmark event.

Lowest sales in years

China’s major exchanges have felt this impact. Huobi’s BTC/USDT The trading volume in the past week was only 109,000 BTC, the lowest weekly trading volume since October 2018. Global exchanges have also been affected by the decline in trading volume, but not to the extent that these are mainly Chinese exchanges. In today’s regulatory environment, there is no doubt that exchanges that actively diversify operations and risks are better able to minimize the damage caused by unfavorable policies.

Cooperating for compliance?

July 13, Nanjing Public Security Research Institute Announced cooperation with OKLink To combat money laundering activities. OKLink is a blockchain technology company that is associated with OK Group, which used to manage the leading exchange OKex. With the incredible scrutiny of exchange leadership in 2021, it is not surprising to see attempts to appease regulators.

Abandoned ship

On July 15, Bishijie, a cryptocurrency media company Announced closure After violating national laws against cryptocurrencies. Bishije, which means Coin World, was popular before the last bear market cycle deepened in 2018. However, the recent bull market cycle has never fully recovered its previous position, which is only a small loss for the current cryptocurrency field. Whether other media platforms on the mainland can survive this difficult period remains to be seen.

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