China declares victory over crypto Is the crackdown over? – Cointelegraph magazine

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This weekly roundup of news from Mainland China, Taiwan and Hong Kong attempts to present the most important news in the industry, including influential projects, changes in the regulatory landscape and enterprise blockchain integrations. .

Victory for regulators

After a tumultuous summer of crackdown, Chinese regulators declare their victory in eliminating illegal cryptocurrency trading activities in the country. The revelation came in the outlook section of the China Financial Stability Report 2021 published by the People’s Bank of China on September 3.

In the section titled Key Achievements in the Battle to Prevent and Defuse Key Financial Risks, he points out that regulatory work in internet asset management, equity-based crowdfunding, internet insurance, virtual currency trading , online currency trading and other areas have been basically completed.

Long PBOC report declares victory over 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 businesses in China are now breathing a sigh of relief. The end of the crackdown means businesses can have a little more leeway 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 editions of the Shanghai Le Mans Chronicles will feature more discussion of development and innovation, and less of repression.

Much of the damage done by regulators has impacted the mining space, although exchanges and brokers are definitely moving away from China in the long term. Players like ByBit and Amber have previously announced that they are not accepting Chinese users, which could be a trend in the future if the risks of doing business in China don’t outweigh the rewards. Bigger players like Binance and FTX will have much bigger decisions to make, but right now they’re not shy about onboarding and serving Chinese users.

From Sichuan to San Antonio

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

It’s happening!

Texas will be the leader in crypto.

Cryptocurrency is now reaching grocery stores in Texas.

HEB puts cryptocurrency kiosks in select grocery stores in Texas. #Cryptocurrency @HEB https://t.co/e4CNsSbd0s via @chron

– Greg Abbott (@GregAbbott_TX) June 19, 2021

Bitmain, the world’s largest mining manufacturer, has a plant in Rockdale, Texas. Rockdale is a city of less than 6,000 people, far from the 21 million people who live in its Beijing home. Incidentally, Bitmain is also deploying $ 62 million in computer hardware in the state of Georgia.

This quiet Texas town is now home to a large Bitcoin mining facility. (Source: Wikimedia Commons)

Shenzhen-based BIT Mining is investing $ 26 million to build a data center in Texas as well. He joins BlockCap, Riot Blockchain and other mining companies already present in the region. All of these businesses will be boosted by the news that state lawmakers have signed Texas House Bills 4474 and 1576, legalizing cryptocurrencies under trade laws.

Texas is now the fourth U.S. state to recognize digital asset status, providing investors and businesses with clarity that China sorely lacks. This summer alone, various regulators in China have flipped on the legal status of cryptocurrencies. This causes a weakening of belief in the sustainability of the Chinese market and is expected to push even more companies overseas.

One country, two regulators

An executive with the Hong Kong Securities and Futures Commission believes the recent number of fraud cases indicates the need for stricter regulation. The Special Administrative Region has a much more flexible policy on digital assets, allowing exchanges like FTX, Bitfinex, and other fintech companies to take hold.

Hong Kong has always been seen as a bridge between business and the strong Chinese market, although in recent years this dynamic has started to reverse. With tighter rules and higher uncertainty in Hong Kong, Singapore is experiencing much greater growth in the cryptocurrency space, with a number of leading industry players residing there.

Non-fungible trends

The general trend of NFTs has not been lost in the Chinese market. OKExChain launched its OKExNFT marketplace on September 2, joining Binance and FTX who 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 Roots, aimed at grabbing the NFT and GameFi market. The Chinese gaming and commerce markets in the past have been very active, which makes a logical move. It remains to be seen whether OKExChain can match the success of other exchange side chains.

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

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

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