Miners are banned, are transactions targeted?This is what really happened

A 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 landscape, and enterprise blockchain integration.

Chinese regulations, FACT or FUD?

Usually, this weekly column will extensively browse all the dynamics, news and even gossip in China. This week, most of the topics fell on the news, that is, another crackdown in the industry has threatened to overthrow the market and become a mature bear market.

Give up landmines

Until the ruling came down from a height, everything was full of fun and gameplay. Liu He, vice premier of China and a member of the Politburo with eight all-around members, presided over the meeting on the prevention and control of financial risks.In decision Cracked down on Bitcoin mining and trading activities, This dagger has pierced the hearts of anyone who wants to see a more open regulatory environment. There were immediate signs in Inner Mongolia that this ruling would not be taken lightly. Set up a report hotline Recruit people who do not obey orders.

BTC.TOP is one of the largest mining pools in the world, reportedly accounting for 2.5% of the global hash rate. Announced that it is closing operations.But this did not prevent BTC.TOP founder Jiang Zhuo from entering the Weibo platform Weibo Announcing that Bitcoin is a tool that China can use Break the monopoly of the US dollar in international trade.

Western experts scramble to find answers

China’s role in the mining industry has always been the main source of mistrust between East and West. Some Bitcoiners claim that China’s possible control of the mining industry may threaten the ability of the chain to remain fully decentralized. Therefore, some people celebrated the news of the ban, believing that the mining community will become more fragmented. However, just because China prohibits operations does not mean that Chinese companies will lose their dominant position in the industry. As Dovey Wan, a partner at Primitive Capital, pointed out, Many miners just pack up and move out The country’s. Registering and operating their own businesses in the United States, Kazakhstan, and even Africa and other regions will not prevent the mined bitcoins from becoming Chinese miners. This will only make the centralization of the network more difficult to actually track.

So far, exchanges and trading platforms have not been affected much. In 2017, when exchanges first became the target of regulations, the impact was much greater because many leading exchanges were registered in China. Today, the platforms have been registered in other countries/regions, have offshore servers, and can satisfy more and different user groups. Since the impact on Chinese society is not so obvious, the interest of local authorities in intervening in these actions will be greatly reduced.Huobi Temporarily suspend futures trading For Chinese users, this is not a permanent change in the way they operate. Futures platform Bybit Reveal that they are checking out The Chinese phone number will be used for registration before June 15, but since most of their users are non-Chinese users, the negative impact will be far less than the risk of continuing to provide services to Chinese users.

Eat cake

For China, this seems to be a winning situation because it can approach its carbon neutral goal by reducing the number of Bitcoin mines. At the same time, it also consolidated eCNY’s position as the only digital asset in the United States. Finally, profits from mining and exchanges may still flow back to the mainland, because exchanges and mining business offices are unlikely to transfer hardware abroad.

Don’t forget Hong Kong

Hong Kong has promoted its ban on retail cryptocurrency transactions by announcing measures to set the minimum investment threshold at approximately US$1 million.The Secretary for Financial Services and the Treasury of Hong Kong, Hui Chi On Defended the claim He expressed his belief that they can protect investors, prohibit market manipulation, and prevent money laundering and terrorist financing. This decision will undoubtedly make it easier to track cryptocurrencies in the Special Administrative Region and make it more difficult for mainland Chinese citizens to circumvent the rules.

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