China Claims Crypto Victory – Is This The End Of The Persecution?

This weekly news aggregator from mainland China, Taiwan, and Hong Kong seeks to curate the top industry news, including impactful projects, changes in the legal landscape, and integration.

Victory for regulators

After a tumultuous summer of raids, Chinese regulators are claiming victory in rooting out illegal cryptocurrency trading practices in the country. This disclosure was made 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 entitled The most important achievement in the struggle to avoid and reduce major financial risks, he emphasized that the management work in Internet Asset Management, Equity-based Crowdfunding, Internet Insurance, Virtual Currency Trading, Online Forex Trading and other areas has essentially been completed.

What sounds like a huge negative for the industry, most projects and companies in China are now breathing a sigh of relief. The end of the crackdown means that companies have a little more room for maneuver without fear of legal action.

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

Most of the regulatory damage has impacted the mining space, although exchanges and brokers are sure to deviate from China in the long run. Players like ByBit and Amber have announced they will not accept Chinese users, which could be a future trend if the risks of doing business in China don’t offset the rewards. Bigger players like Binance and FTX will have more big decisions to make, but for now they are not shy about introducing and serving Chinese users.

From Sichuan to San Antonio

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

It happens!

Texas will be the crypto leader.

Cryptocurrency is now coming to grocery stores in Texas.

HEB is installing crypto kiosks in several 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 producer, has Base in Rockdale, Texas. Rockdale is a city of fewer than 6,000 people, a far cry from Beijing’s 21 million people. Bitmain also provides hardware worth $ 62 million in the state of Georgia.

Shenzhen-based BIT Mining is also investing $ 26 million to build a data center in Texas. It joins BlockCap, Riot Blockchain and other miners already working in the area. All of these companies will be delighted to hear that state lawmakers have signed the Texas House Bills 4474 and 1576, which legalize cryptocurrencies for commercial purposes.

Texas is now the fourth US state to recognize digital asset status, giving investors and businesses the clarity China so lacks. This summer alone, various supervisory authorities in China exposed the legal status of cryptocurrencies. This undermines confidence in the future viability of the Chinese market and will drive even more companies abroad.

One country, two governing bodies

An officer of the Securities and Futures Commission of Hong Kong to trust The recent fraud cases show the need for stricter regulations. The Special Administrative Region has a much more relaxed policy on digital assets, allowing exchanges like FTX, Bitfinex, and other fintech companies to get set up.

Hong Kong has always been seen as a bridge between corporations and the powerful Chinese market, although this dynamic has been slowly reversing in recent years. With tighter regulations and greater uncertainty in Hong Kong, Singapore is enjoying stronger growth in the crypto space, with several prominent industry players based there.

Trends are irreplaceable

The overall trend of NFT is not lost in the Chinese market. OKExChain has started OKExNFT. market on September 2nd, joining Binance and FTX who have already launched similar platforms.

While it doesn’t have the most innovative naming team, it does have some loot-like NFTs called Root that are aiming to hit the NFT and GameFi markets. In the past, China’s gambling and trading markets have been very active, which 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, has turned into a business master.