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

China declares victory over crypto — Is this the end of the crackdown? – Cointelegraph Magazine 1
China declares victory over crypto — Is this the end of the crackdown? – Cointelegraph Magazine

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.

Table of Contents

Victory for regulators

After a tumultuous summer of raids, Chinese regulators declare their victory in eliminating illegal cryptocurrency trading activities in the country. This revelation came in the “Views” section of the “China Financial Stability Report 2021“Published by the People’s Bank of China on September 3rd.

In the section entitled Important achievements in the fight to prevent and mitigate major financial riskshe points out that the regulatory work in internet asset management, stock-based crowdfunding, internet insurance, virtual currency trading, online currency trading and other areas is essentially complete.

The PBOC’s long report declares victory in the digital asset crackdown. Source:

Even if this may sound like a huge negative for the industry, most projects and companies in China are now breathing a sigh of relief. The end of crackdown means companies can have a little more breathing space without fear of legal action.

China’s public blockchain industry, or what’s left of it, no longer needs to exist in the shadows. There is also hope that the upcoming editions of the Shanghai Man columns will discuss more development and innovation than raids.

Most of the regulatory damage affected the mining space, although exchanges and brokers are definitely moving away from China in the long run. Players like ByBit and Amber have already announced that they will not accept Chinese users, which could be a future trend if the risks of doing business in China are not balanced with the rewards. Bigger players like Binance and FTX will have to make much bigger decisions, but for now they are not afraid to host and serve Chinese users.

From Sichuan to San Antonio

After operations in China ceased, many large mining companies looked for greener pastures overseas. Since Texas Governor Greg Abbot tweeted that Texas would become a crypto leader, many cryptocurrency mining companies have moved to the Lone Star state in search of regulatory stability.

It happens!

Texas will be the crypto leader.

Cryptocurrency is now hitting grocery stores in Texas.

HEB is installing cryptocurrency kiosks in some grocery stores in Texas.# Cryptocurrency @HAVE above @chron

– Greg Abbott (@GregAbbott_TX) June 19, 2021

Bitmain, the world’s largest mining company, has one Facility in Rockdale, Texas. Rockdale is a city of fewer than 6,000 people, a far cry from the 21 million people who populate their native Beijing. Bitmain also provides hardware worth $ 62 million in the state of Georgia.

File: US Route 79 is the main street of Rockdale, TX IMG 2255.JPG - Wikimedia CommonsThis quiet Texas town is now home to a large Bitcoin mining facility. (Source: Wikimedia Commons)

Shenzhen-based BIT Mining is pumping $ 26 million into the construction of a data center in Texas. It joins BlockCap, Riot Blockchain and other mining companies already operating in the region. All of these companies are backed by the news that state lawmakers signed the Texas House Bills 4474 and 1576, which legalize cryptocurrencies under trading laws.

Texas is now the fourth US state to recognize digital asset status, providing investors and companies with clarity that is sorely lacking in China. This summer alone, various supervisory authorities in China changed the legal status of cryptocurrencies. This weakens belief in the sustainability of the Chinese market and is likely to drive even more companies abroad.

One country, two regulators

An officer of the Hong Kong Securities and Futures Commission believes the recent number of fraud cases suggests stricter regulation. The Special Administrative Region has a much looser policy towards digital assets, allowing exchanges like FTX, Bitfinex, and other fintech companies to set up.

Hong Kong has always been seen as a bridge between corporations and the robust Chinese market, although this dynamic has been slowly reversing in recent years. With tighter rules and greater uncertainty in Hong Kong, Singapore is enjoying much more growth in the cryptocurrency space, with a number of high profile industry players taking up residence there.

Not fungible trends

The general trend towards NFTs has not been lost in the Chinese market. OKExChain has its OKExNFT marketplace on September 2nd, joining companies like Binance and FTX that 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 Root, which are aimed at breaking into the NFT and GameFi market. China’s gambling and trading markets have been very active in the past, so this was a logical step. It remains to be seen whether OKExChain can keep up with the success of other Exchange sidechains.

Steph Curry’s decision to join FTX as an ambassador received mixed reviews as some suggested that the NBA star, known in China for his playful personality, had matured into a master of the business.

China declares victory over crypto — Is this the end of the crackdown? – Cointelegraph Magazine 2OKExNFT Marketplace started this week with a small GameFi offer.

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