On April 9, the coming altcoin news showed that many coins are mined in China – and that the Chinese government agency is considering the elimination of crypto mining in the country. Since China has been hosting the majority of mining pools on its land, the global crypto industry is definitely taking a big hit if something like this happens.
According to the reports by Reuters which are in the latest cryptocurrency news, Chinese authorities have been spearheading the “blockchain before Bitcoin” approach since 2017 and the country’s initial coin offerings (ICOs) ban which also banned traders from trading on crypto exchanges.
As of now, people in China are eligible to hold cryptocurrencies but are prohibited from trading them. The mining industry has also been subject to regulation of this kind. In February 2018, CNN Money published a report in which the Chinese government pushed crypto miners to make “an orderly exit” from the industry mostly due to tax issues and mining, both of which were seen as dangerous for the environment.
Another article published on Quartz a month earlier stirred the atmosphere and showed that the country’s top internet-finance regulator which is the Leading Group of Internet Financial Risks Remediation, has ordered local authorities to use all of their available options including “measures linked to electricity prices, land use, tax, and environmental protection” – to force miners to shut down their business.
In response to this crackdown, some of the largest mining players in China chose to move shop or even change their main line of business. For example, the Chinese ASIC chip manufacturer and mining outfit Bitmain has been experiencing significant difficulties caused by the bear market – and decided to turn to artificial intelligence (AI) as an alternate revenue source.
“As a China company, we have to be prepared,” Bitmain’s chief then said. The company also planned to relocate to Texas but had to cancel its plans due to the market collapse which occurred earlier this year.
If implemented, the new ban is likely to have a strong impact on the global crypto industry. In such case, part of the mining economy could move underground but the overall scope of mining operations won’t be the same for China.
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South Korean Exchanges Increase Liability Following Demands From Regulators
“The overstatement of trading volumes by cryptocurrency exchanges, and by implication the understatement of the importance of listed futures, suggests that market structure has likely changed considerably since the previous spike in Bitcoin prices in end-2017 with a greater influence from institutional investors,” JPMorgan wrote in a piece that speaks about Bitcoin futures and regulations.As we reported earlier this year, increasing security for South Korean platforms is also important due to the increased risk of cyberattacks from the neighboring North Korea. Last month, for example, there was a phishing scam that targeted users of the South Korean exchange Upbit - and was later confirmed to be work of North Korean state actors. At the same time, the coming altcoin news reported that a lot of South Korean exchanges were reporting gross losses for 2018 mostly because of the bear market. Data showed that only the Upbit crypto exchange made profits. Coinnest, for example, has shut down altogether in May this year. All in all, South Korean crypto exchanges have always been a hot topic reported by many best cryptocurrency news sites - especially because of the tight regulation and variety of users.
Indian Central Bank Denies Knowledge Of Proposed Crypto Ban Bill
“The penalty imposed on the accused, according to the bill, shall be either thrice the loss caused to the system, or three-fold the gains made by him/her, whichever is higher. If the loss or gain can’t be reasonably determined, the maximum fine that can be imposed may be notified by the government.’’
Financial Action Task Force Wants To Turn BTC Exchanges Into Banks
“Their recommendation could have a much larger impact than the SEC or any other regulator has had to date.”He also added that the problem was ‘’one of the biggest threats to crypto today.’’ Also, the FATF announced previously an incremental approach to crypto management in 2018:
“As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets.“As reported previously in the coming altcoin news, the G20 members pledged to implement the suggestions by the FATF in full and as the deadline approaches, crypto entities are now sounding the alarm noting that an apparent ineptitude on the FATF side will get them. However, crypto users are not sure what this means. Many stay strong on the stance that Bitcoin is not a bank and is not SWIFT. Bitcoin is also not considered as money and it is just a database. Many want to make sure they keep Bitcoin that way.
G20 Ministers Address The Benefits Of Cryptocurrencies
“While crypto-assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).”However, the G20 leaders also reconfirmed their commitment to a globally consistent regulatory environment and agreed that overregulation is an issue that should be avoided. Still, they will have to strike a difficult balance since overregulation is found to stunt the growth and innovation necessary if the industry is to serve its communities. The G20 Ministers and central governors also reiterated their commitment to the various initiatives which happen underway. As they revealed, they fully support the regulatory efforts that protect both consumers and investors - as well as support the market integrity. Another important topic at the G20 Summit was cyber regulation. In times when crime is more and more present online, the G20 leaders agreed on the following:
“…a tsunami of tough new global anti-money laundering (AML) and counter-terror financing (CTF) regulations will roll over the crypto landscape in the coming year.”The G20 has shown big consistency and a multilateral regulatory approach which was praised by many best cryptocurrency news sites.
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