Wednesday, September 28

China Declares Victory Over Cryptocurrencies: Is This The End Of The Crackdown? – Cointelegraph Magazine


This weekly roundup of news from mainland China, Taiwan, and Hong Kong attempts to collect the industry’s biggest news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

Victory for regulators

After a tumultuous summer of crackdowns, Chinese regulators are declaring their victory in eliminating illegal cryptocurrency trading activities in the country. This revelation occurred in the perspectives section of the “China Financial Stability Report 2021”Released by the People’s Bank of China on September 3.

In the section titled Main achievements in the battle to prevent and mitigate the main financial risks, emphasizes that regulatory work on Internet asset management, equity-based crowdfunding, Internet insurance, virtual currency trading, online currency trading and other areas has been basically completed.

The extensive report of the People’s Bank of China declares victory in the crackdown on digital assets. Source: http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4332768/2021090315580868236.pdf

While this may seem like a huge negative for the industry, most projects and companies in China are now breathing a sigh of relief. The end of the crackdown means that companies can have a little more breathing room to operate without fear of legal action.

China’s public blockchain industry, or what’s left of it, will no longer have to exist in the shadows. There is also hope that future issues of the Shanghai Man columns will include more discussions on development and innovation, and less on crackdown.

Most of the damage from regulators hit the mining space, although exchanges and brokers are definitely shifting away from China in the long run. Players like ByBit and Amber have already announced that they are not accepting Chinese users, which could be a trend in the future if the risks of doing business in China are not balanced by the rewards. Bigger players like Binance and FTX will have much bigger decisions to make, but at the moment, they are not shying away from onboarding and serving Chinese users.

From Sichuan to San Antonio

After shutting down operations in China, many large mining companies began looking abroad for greener pastures. Since Texas Governor Greg Abbot tweeted that Texas would become a crypto leader, many cryptocurrency mining companies have moved to the Lone Star state in search of regulatory stability.

Bitmain, the world’s largest mining manufacturer, has a installations in Rockdale, Texas. Rockdale is a city with fewer than 6,000 residents, a far cry from the 21 million people that make up their home in Beijing. By the way, Bitmain is also rolling out $ 62 million worth of hardware in the state of Georgia.

File: US Route 79 is the main street in Rockdale, TX IMG 2255.JPG - Wikimedia Commons
This sleepy Texas town is now home to a large Bitcoin mining facility. (Source: Wikimedia Commons)

Shenzhen-based BIT Mining is pumping $ 26 million to build a data center in Texas as well. It joins BlockCap, Riot Blockchain, and other mining companies already in the area. All of these companies will be boosted by news that state legislators have signed Texas House bills 4474 and 1576, which legalize cryptocurrencies under trade laws.

Texas is now the fourth US state to recognize the status of digital assets, giving investors and businesses the clarity that is lacking in China. Just this summer, different regulatory bodies within China have changed the legal status of cryptocurrencies. This is causing a weakening of belief in the sustainability of the Chinese market and should push more companies abroad.

One country, two regulators

An executive of the Hong Kong Securities and Futures Commission believe the recent number of fraud cases points to the need for stricter regulation. The special administrative region has a much more flexible policy towards digital assets, allowing exchanges like FTX, Bitfinex, and other Fintech companies to establish themselves.

Hong Kong has always been seen as a bridge between corporations and the robust Chinese market, although in recent years that dynamic is beginning to reverse. With stricter rules and greater uncertainty in Hong Kong, Singapore is enjoying much greater growth in the cryptocurrency space, with a number of high-profile industry players settling in there.

Non-fungible trends

The general trend of NFTs has not been lost in the Chinese market. OKExChain launched its OKExNFT Market on September 2, joining companies like Binance and FTX that have already launched similar platforms.

While it doesn’t have the most creative naming team, it is home to a number of Loot-like NFTs known as Root, destined to take over the NFT and GameFi market. China’s gaming and trading markets have, in the past, been very active, so this is a logical move. It remains to be seen if OKExChain can match the success of other exchange sidechains.

Steph Curry’s decision to join FTX as an ambassador received mixed reviews, with some pointing out that the NBA star, known in China for his playful personality, had become a master of business.

OKExNFT Marketplace launched this week, with a small offering from GameFi.




cointelegraph.com

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