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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 regulations, FACT or FUD?
Usually, this weekly column will extensively examine all developments, news and even gossip in China. This week, most topics retreated to the second place, because another crackdown has swept the entire industry and may push the market into a full-scale bear market.
Abandon the mine
Everything is fun and game, until the superiors make a ruling. Liu He, Vice Premier of China and a member of the Politburo with eight full powers, presided over a meeting on financial risk prevention and control.Among the decisions Is a blow to Bitcoin mining and trading activities, To pierce the hearts of anyone who wants to see a more open regulatory environment.There are immediate signs that the ruling will not be taken lightly, Inner Mongolia Province Set up a hotline for reporting To expel those who disobey orders.
BTC.TOP is one of the largest mining pools in the world. It is reported that it accounts for 2.5% of the global computing power. Announced closure of operations. This did not stop BTC.TOP founder Jiang Zhuo from posting on 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 community has always been a major source of mistrust between East and West, and some Bitcoiners claim that China’s possible control of the mining community may threaten the chain’s ability to remain fully decentralized. Therefore, some people celebrate the news of the ban, believing that the mining community will become more fragmented. However, just because China bans 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 their bags and move out The country’s. Registering and conducting business in regions such as the United States, Kazakhstan, and even Africa will not actually prevent the mined BTC from being owned by Chinese miners, but 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 a regulatory target, the impact was much greater because many leading exchanges were registered in China. Today, platforms are registered in other countries/regions, have offshore servers, and cater to a more diverse user base. Local authorities are much less interested in intervening in these actions because the impact on Chinese society is much smaller.Huobi Suspension of futures trading For Chinese users, this does not seem to permanently change the way they operate. Futures platform Bybit Revealed that they are closing the account Register with a Chinese phone number before June 15, but because most of their users are not Chinese, the negative impact will be much smaller than the risk they continue to take to serve Chinese users.
Have your cake, eat it too
This seems to be a winning situation for China, as it can get closer to its carbon neutral goal by reducing the number of Bitcoin mines. At the same time, it also consolidated eCNY’s position as the country’s only digital asset. Finally, profits from mining and exchanges may still flow back to the mainland, because the offices of exchanges and mining operations are unlikely to bring hardware out of China.
Don’t forget hong kong
Hong Kong is advancing its ban on retail cryptocurrency transactions, 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 Zhihua, Has defended the claim He expressed his belief that they protect investors, prohibit market manipulation, and prevent money laundering and terrorist financing. This decision will definitely make the cryptocurrency of the Special Administrative Region easier to track and make it more difficult for mainland Chinese citizens to circumvent the rules.
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