China declares victory over crypto — Is this the end of the crackdown?

The People’s Bank of China launched a report asserting actions to cease digital asset fraud have been accomplished. Will NFTs and GameFi be capable of flourish in the regulatory wake?

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

Victory for the regulators

After a tumultuous summer time of crackdowns, the Chinese regulators are declaring their victory in eliminating unlawful cryptocurrency buying and selling actions in the nation. This revelation got here in the outlook part of the “China Financial Stability Report 2021” launched by the People’s Bank of China on September 3.

In the part titled Major Achievements in the Battle to Prevent and Defuse Major Financial Risks, it emphasizes that regulatory work in web asset administration, equity-based crowdfunding, web insurance coverage, digital foreign money buying and selling, on-line overseas alternate buying and selling, and different areas has been principally accomplished. 

The prolonged report from the PBOC declares victory on the crackdown on digital belongings. Source:

While this would possibly sound like an enormous destructive for the business, most initiatives and firms in China at the moment are respiratory a sigh of reduction. The end of the crackdown implies that corporations can have slightly extra respiratory room to function with out worry of authorized motion.

China’s public blockchain business, or what’s left of it, will not must exist in the shadows. There’s additionally hope that upcoming editions of Shanghai Man’s columns will function extra dialogue about growth and innovation, and fewer about crackdowns.

Most of the injury from regulators impacted the mining house, though exchanges and brokers are undoubtedly shifting away from China long-term. Players like ByBit and Amber have already introduced they don’t settle for Chinese customers, which may be a pattern going ahead if the dangers of doing enterprise in China don’t steadiness out with the rewards. Bigger gamers like Binance and FTX could have a lot larger selections to make, however at the second, aren’t shying away from onboarding and servicing Chinese customers. 

From Sichuan to San Antonio

After winding down operations in China, many massive mining corporations started searching for greener pastures abroad. Since Texas governor Greg Abbot tweeted that Texas would grow to be a crypto chief, many cryptocurrency mining corporations have moved to the Lone Star state in search of regulatory stability. 

Bitmain, the largest mining producer in the world, has a facility in Rockdale, Texas. Rockdale is a city with lower than 6,000 individuals, a far cry from the 21 million those who populate its dwelling in Beijing. Incidentally, Bitmain can be deploying $62 million price of {hardware} into the state of Georgia. 

This quiet city in Texas is now dwelling to a big Bitcoin mining facility. (Source: Wikimedia Commons)

Shenzhen-based BIT Mining is pumping in $26 million to construct an information middle in Texas as nicely. It joins BlockCap, Riot Blockchain, and different mining corporations already in the space. All these companies will likely be buoyed by the information that state legislators have signed Texas House Bills 4474 and 1576, legalizing cryptocurrencies beneath industrial legal guidelines.

Texas is now the fourth US state to acknowledge the standing of digital belongings, giving traders and firms readability that’s sorely missing in China. Just this summer time alone, totally different regulatory our bodies inside China have flip-flopped on the authorized standing of cryptocurrencies. This is inflicting a weakening perception in the sustainability of the Chinese market and may push much more corporations overseas. 

One nation, two regulators

An govt for Hong Kong’s Securities and Futures Commission believes the latest quantity of fraud instances factors to a necessity for stricter regulation. The particular administrative area has a a lot looser coverage in the direction of digital belongings, permitting exchanges like FTX, Bitfinex, and different Fintech corporations to arrange store.

Hong Kong has all the time been seen as a bridge between firms and the sturdy Chinese market, though lately, that dynamic is beginning to reverse. With tighter guidelines and better uncertainty in Hong Kong, Singapore is having fun with much more progress in the cryptocurrency house, with a quantity of high-profile business gamers taking over residency there. 

Non-fungible developments

The total pattern of NFTs hasn’t been misplaced on the Chinese market. OKExChain launched its OKExNFT market on September 2, becoming a member of the likes of Binance and FTX who’ve already launched comparable platforms.

While not possessed with the most inventive naming crew, it does home a quantity of Loot-lookalike NFTs often known as Root, aimed toward grabbing the NFT and GameFi market. China’s gaming and buying and selling markets, in the previous, have been very energetic, making this a logical transfer. Whether OKExChain can match the success of different alternate sidechains stays to be seen.

Steph Curry’s choice to hitch FTX as an envoy acquired blended opinions as some identified that the NBA star, identified in China for his playful character, had matured right into a grasp of enterprise.


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