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Shanghai Man: Crypto media closes, unhealthy information simply repeats, mining legal guidelines are useful?


With authorities officers attempting to scrub up the picture of China previous to the beginning of the Winter Video games, miners are leaving in droves and media group Bishijie has been pressured to shut down

This weekly roundup of reports from Mainland China, Taiwan, and Hong Kong makes an attempt to curate the business’s most vital information, together with influential initiatives, adjustments within the regulatory panorama, and enterprise blockchain integrations.

It has now been two months for the reason that crypto crackdown and subsequent enforcement started. Most new tales are actually simply the trickling down of earlier nationwide insurance policies being enforced at a provincial stage. The newest instance was from the Anhui provincial authorities, because it introduced a set of measures to cut back power consumption, with cryptocurrency mining listed among the many culprits. Anhui is a small province east of Shanghai, extra identified for its scenic rural panorama and agriculture than its contributions to the financial improvement of China. It’s probably different provinces, notably ones that depend on coal for power, may have comparable bulletins over the summer season because the central authorities pushes for a carbon-neutral future.

On July 13, Chinese language mining pool large Bit Mining introduced it had raised $50 million for growth outdoors of China. The corporate is listed on Nasdaq and operates, which is presently a prime 5 pool for Bitcoin, Bitcoin Money, and Litecoin. That is one other signal that Chinese language mining corporations aren’t giving up in gentle of the restrictions at residence, as an alternative selecting to relocate the information facilities and mining machines overseas.

The disappearing business left a path of spectacular pictures, together with some revealed by Monetary media Caixin. One picture that grabbed the eye of social media depicted a girl who seemed to be an ethnic minority holding a bundle of mining tools and energy cables like a flower bouquet.

Going for gold?

Former Bitmain CEO Jihan Wu believes that the mining laws will profit the business over the long-term, citing an improved public picture and eradication of unhealthy actors. It’s definitely a pleasant thought, however in the mean time, China appears extra intent on eliminating all actors, not simply the unhealthy ones.

With the upcoming Winter Olympics in February of 2022 looming, Beijing may have the right alternative to indicate off clear blue skies and clean-energy industries. On prime of that, China can showcase its state-of-the-art central financial institution digital foreign money, with out the confusion stemming from extra speculative digital property which may seem to have similarities on the floor. These with first hand reminiscences of the 2008 Summer season Olympics may additionally keep in mind the strict regulation towards know-how and social unrest previous to that landmark occasion.

Lowest volumes in years

The influence is being felt by main exchanges in China. Huobi’s BTC/USDT pair noticed solely 109K BTC transacted prior to now week, the bottom weekly quantity relationship again to October of 2018. World exchanges had been additionally affected by slumping volumes, however to not the diploma as these predominately Chinese language exchanges. In immediately’s regulatory local weather, there’s little doubt that exchanges proactive in decentralizing operations and threat are higher poised to reduce harm from unfavorable insurance policies.

Working collectively for compliance?

On July 13, the Nanjing Public Safety Analysis Institute introduced it was working with OKLink to fight cash laundering. OKLink is a blockchain know-how agency that has ties to OK Group, an organization that used to handle main alternate OKex. With alternate management beneath unimaginable scrutiny in 2021, there isn’t any shock in seeing makes an attempt to placate regulators.

Abandoning ship

On July 15, cryptocurrency media firm Bishijie introduced it was shutting down after violating nationwide legal guidelines towards cryptocurrency. Bishije, which interprets to Coin World, had loved quite a lot of reputation in 2018, previous to the depths of the final bear market cycle. This latest bull cycle by no means noticed it absolutely get better it’s earlier place nonetheless, making this solely a minor loss for the present cryptocurrency area. It stays to be seen whether or not different media platforms primarily based within the mainland can survive this attempting time frame.