{"id":465867,"date":"2021-06-18T16:08:46","date_gmt":"2021-06-18T16:08:46","guid":{"rendered":"https:\/\/wncen.com\/?p=465867"},"modified":"2024-06-11T08:56:11","modified_gmt":"2024-06-11T08:56:11","slug":"china-crackdown-on-bitcoin-beginning","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/china-crackdown-on-bitcoin-beginning\/","title":{"rendered":"Why China’s Crackdown On Bitcoin May Be Just Beginning"},"content":{"rendered":"
Bitcoin mining activities might be coming to an end as the industry is used to knowing them.<\/a> The Asian giant has decided to step up its regulations on this sector; many miners have decided to migrate to friendlier countries.<\/p>\n Investment firm Sino Global Capital stated<\/a> via Twitter that China could be increasing its interventions in its markets. Thus, they have taken stricter control measures to \u201cprotect investors\u201d. As a consequence, the Bitcoin and crypto industry in China is \u201cshowing sings of cooling down\u201d.<\/p>\n China seems to have two targets in the crypto industry BTC mining and leverage trading. Sino Global Capital sees Chinese regulators making these items a priority in the short term. The firm\u2019s report claims:<\/p>\n To prevent scammers from making a comeback and intentionally manipulating the market, there is still a high probability that there will be more supervision rules implemented one by one.<\/p><\/blockquote>\n Usually regarded as FUD (Fear, uncertainty and doubt), this time China\u2019s measure against Bitcoin seem to be materializing. The industry\u2019s balance, at least in the mining sector, could shift. This sector could completely migrate west.<\/p>\n In the U.S., cities such as Miami<\/a> and Texas<\/a> could welcome the Bitcoin mining operations. Francis Suarez, Miami\u2019s Mayor, seems to be in negotiation with some miners. The city has nuclear power as part of its electricity grid and could offer attractive rates. Su\u00e1rez said:<\/p>\n Bitcoin miners want to get to a certain kilowatt price per hour, and we\u2019re working with them on that.<\/p><\/blockquote>\n Bitcoin-based derivatives traders that use leverage could see the worst take. Sino Global Capital records report from people that have \u201creceived calls from the police\u201d. The local authorities apparently are inquiring about the citizens crypto related activities.<\/p>\n Exchange platforms might take measures to avoid the authority\u2019s scrutiny. Huobi, one of China\u2019s main exchange, will reduce its leverage offer from 125x to 5x, according to Sino Global Capital. For its newest customers, the measures is even harder, they won\u2019t be able to use any leverage.<\/p>\n As predictable, China as target different sectors and markets, including TradFi. The report indicates that two major securities exchanges, FUTU and Tiger, won\u2019t continue to provide Bitcoin related data.<\/p>\n Both confirmed that their latest App releases have suspended CME BTC market information and trading functions. FUTU\u2019s customer service said that in response to regulatory requirements, the provision of market information and transactions have been suspended.<\/p><\/blockquote>\n The investment firm believes the Chinese government finds \u201cspeculative\u201d Bitcoin trading as a threat to the nation\u2019s economic and financial stability. Thus, they have adopted these measures.\u00a0 Sino Capital concludes that there is growing trend of introducing more crypto regulations.<\/p>\n Global crypto policies are tightening: The Basel Committee on Banking Supervision has demanded that cryptocurrencies carry the toughest bank capital rules of any asset, according to Financial Times.<\/p><\/blockquote>\nChina Targets Bitcoin Trades With Leverage<\/h2>\n