This weekly roundup of news from mainland China, Taiwan, and Hong Kong attempts to curate the industry’s top news, including influential projects, changes in the regulatory landscape, and corporate blockchain integrations.
It has now been two months since the crypto crackdown and subsequent enforcement began. Most of the new stories now are just the leakage of previous national policies enforced at the provincial level. The most recent example came from the Anhui provincial government, which announced a series of measures to reduce energy consumption, with cryptocurrency mining listed among the culprits. Anhui is a small province east of Shanghai known for its scenic rural scenery and agriculture rather than its contribution to China’s economic development. It is likely that other provinces, especially those that rely on coal for energy, will make similar announcements in the summer as the central government pushes for a carbon-neutral future.
On July 13, Chinese mining pool giant Bit Mining announced that it had raised $ 50 million to expand outside of China. The company is listed on the Nasdaq and operates BTC.com, which is currently a top 5 pool for Bitcoin, Bitcoin Cash, and Litecoin. This is yet another sign that, given domestic restrictions, Chinese mining companies are choosing to move their data centers and mining equipment overseas.
The disappearing industry left a trail of impressive photographs, including some published by the Caixin financial media. One image that caught social media attention showed a woman who appeared to be an ethnic minority holding a bundle of mining equipment and power cables like a bouquet of flowers.
Want to win the gold medal?
Former Bitmain CEO Jihan Wu believes mining regulations will benefit the industry in the long term, pointing to an improved public image and the eradication of bad actors. It’s certainly a nice thought, but right now China seems more intent on eliminating all actors, not just the bad ones.
With the upcoming Winter Olympics in February 2022, Beijing has the perfect opportunity to showcase clear blue skies and a clean energy industry. Additionally, China will be able to showcase its state-of-the-art central bank digital currency without the confusion caused by more speculative digital assets that seem to have similarities on the surface. Those with firsthand memories of the 2008 Summer Olympics may also remember the stringent anti-technology and social unrest regulations prior to this landmark event.
Lowest volumes in years
The effects are being felt by leading stock exchanges in China. Huobi’s BTC / USDT pair recorded only 109,000 BTC transactions last week, the lowest weekly volume since October 2018. Global exchanges were also affected by declining volumes, but not as much as these predominantly Chinese exchanges. In today’s regulatory climate, there is no doubt that a proactive exchange of decentralizing processes and risks is better able to minimize damage from unfavorable guidelines.
Working together for compliance?
On July 13, the Nanjing Public Security Research Institute announced that it was partnering with OKLink to combat money laundering. OKLink is a blockchain technology company that has ties to OK Group, a company that formerly managed the leading exchange, OKex. With the stock market undergoing an incredible scrutiny in 2021, it comes as no surprise that attempts are being made to appease regulators.
On July 15, cryptocurrency media company Bishijie announced that it would be closing after violating national cryptocurrency laws. Bishije, which translates as Coin World, enjoyed great popularity in 2018, before the depths of the last bear market cycle. However, in this most recent bull cycle, it has never fully recovered from its previous position, making this only a minor loss for the current cryptocurrency space. It remains to be seen whether other mainland-based media platforms can weather this difficult period.