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.
Chinese Repression: Week 7
The summer of repression continues this week, seven weeks ago Initial announcement On May 18, virtual currency is a risky investment, and financial institutions should not provide services for it. As public interest in the asset class has cooled, the crackdown seems to have achieved the desired effect. This is evidenced by the 90-day low of WeChat searches for the term “bitcoin” last weekend, although this trend is also reflected in global Google searches.
This Central bank Are the invaders this week, Announce It stated on its website on July 6 that it is not allowed to directly or indirectly provide virtual currency-related services to customers with other related institutions. The announcement also mentioned that institutions cannot provide services such as business premises, commercial displays, marketing activities, and payment transfers for business activities related to virtual currencies. as usual, Weibo comments Since Chinese social media still has the voice of traditional investors, it strongly supports this regulation.
Jack Ma’s fund is in
On July 1, NFT game giant Animoca Brands announced that it had received a US$50 million investment from Blue Pool Capital.Bluepool Capital was founded by technology entrepreneur Jack Ma in 2015 and manages some His net worth of US$52.1 billion. Blue Pool Capital also manages part of Joe Tsai’s wealth, he is the current executive vice chairman Alibaba. Animoca Brands develops and publishes NFT games such as REVV Motorsport and The Sandbox.
BTC mining power remains the same Down by about 50% Chinese miners either stand by or seek relocation. This has led to adjustments in the difficulty of the Bitcoin consensus algorithm, making the block easier to mine by about 28%.As a result, the remaining miners became Estimated profit increase by 50%, According to a report by Cointelegraph.
Many people, including Mike Novogratz, CEO of Galaxy Digital, talked about the positive consequences of the current crackdown. Nick Spanos of Zap Finance Indicates that Bitcoin is an unstoppable machine Due to the fact that “the world’s second largest economy cannot suppress, depreciate and manipulate Bitcoin”. This conclusion of Spanos ignores the fact that China gets very little social value from squeezing or devaluing Bitcoin. Current policies are more interested in eliminating inefficient use of energy and risky speculative trading behavior.
Cross the line
July 6, Beijing Municipal Civil Affairs Bureau Prohibit China Blockchain Application Research Center. Although the official response stated that the research center was conducting illegal social activities, it did not give a specific reason for the ban. The center is likely to be involved in cryptocurrency, which is considered illegal due to the official nature of their names. It is common for organizations to adopt formal names in order to improve their position in the industry.
The China Blockchain Application Research Center was established in Beijing in November 2015 by blockchain industry institutions such as the Internet Finance Museum. It claims to have established regional centers in Hangzhou, Shanghai, Silicon Valley and Dubai. In hindsight, their contribution to the industry seemed minimal, which made this legal action more formal than anything else.