This weekly roundup from mainland China, Taiwan and Hong Kong seeks to identify the most important news in the industry, including influential projects, changes in regulatory terrain, and enterprise blockchain integration.
China returned to work this week after celebrating its week-long National Day, an event that is always filled with flag hoisting, military parades and enthusiastic nationalism. This year’s edition has been intensified by the recent repatriation of Huawei executive Meng Wangzhou after a three-year stint in Canada, as well as escalating tensions over the Taiwan method. Government regulators have spent the better part of the last half year wiping out the cryptocurrency industry on the mainland, an issue that has given Shanghai Man a lot to discuss in this weekly column.
Limited access to the market
On Wednesday, Binance took a step towards consent by announcing it would Off P2P for RMB market. According to the announcement on Binance’s website, the change will take place on December 1, 2021. Meanwhile, it will check users from mainland China and change their accounts only to withdrawals. At the same time, users will only be able to withdraw, close location and perform other necessary actions. Binance will notify the concerned users via email days before the account is switched.
The rest of the retailers did not receive the news very well, as they felt that less and less reliable off-ramps were available without more stringent measures like offshore accounts. Benin was one of the most popular P2P markets due to its reputation for exchange, its liquidity and its geographical distance from Beijing. Benson has always said that his website was blocked in China and that his exchange business was not present here, so it was exempt from the mainland control policy.
There is no denying that the lack of P2P Fiat options will make investing in crypto much less comfortable for Chinese nationals living in mainland China. With ECNY just around the corner from the central bank’s digital currency, stringent Fiat regulations could make it difficult to move large numbers of Fiats into and out of the crypto market. On the other hand, many are less worried, knowing that OTC markets will emerge whenever they have the opportunity to provide services as per the demand. Technology always has a way of evolving where it is most needed.
Fall in the middle of the line
The move seems quite serious on paper, but there are still a few gray areas that need to be examined. It is no secret that millions of Chinese users registered on the top exchanges this year, and many of them were active traders and large holders. Some of them will likely be hampered by recent government policy and exchange rules and reduce their exposure to the wealthy class. Others are actively entering Defy, as evidenced by the growing on-chain trading volume from China.
Other users will choose to just wait, especially considering the rapidly changing nature of national policy. A common belief is that the exchange that chooses for self-regulation may not actually apply this principle very strictly at first. This is supported by the lack of clarity on how foreign Chinese users should handle it. Users can completely break the rules by providing proof of international residency or an alternative form of ID. The silver lining here is that selling pressure due to uncertainty or fears from Chinese investors will break the long-term consensus.
For a company that operates entirely outside of China, it is very difficult for regulators to enforce the policies, especially if the exchange demands self-regulation, prohibits IP and does not accept new Chinese registrations. The strategy seems to be following exchanges like OKEx and Gate.io, as these two major platforms, including Chinese Roots, have announced that they have already fully agreed, not accepting Chinese users and as a result will not make any drastic changes.
Gate announced its policy without insisting on the removal of Chinese users from the existing mainland. https://t.co/q3yYLMX0Wp
– uWuBlockchain October 13, 2021
A prominent social media influencer on Weibo wrote:
“The content of this announcement is a bit strange. I think the exchange will do a self-verification-pick and try to find the remaining Chinese users on the platform, but after the self-verification the exchange declares that there are no Chinese users, the exchange will leave them there.
This post was later deleted on Weibo. Currently, everything related to banking and other exchanges is censored by social media apps like WeChat.
Reduction effect
Perhaps the most surprising acceptance of all this was the market’s indifference to the news. Previous announcements of this magnitude have had a very clear effect on market prices. On Wednesday, after Benson’s announcement, BTC’s price fell briefly before bouncing over 58 58,000 the next day.
Does this show that the market is paying less attention to the impact of the news coming out of China, instead of focusing on narratives like the expected ETF approval in the US and Vladimir Putin’s surprise? Admission About cryptocurrency. Investors can take comfort in the fact that market risk is more diverse with further growth and decentralization.
Right to enforce
On October 11, the financial magazine Kaizing published a The story Discuss the application of recent crackdowns on cryptocurrencies. The key points were that the recent announcements of the central bank were mere guidelines and that the judicial system needed real judicial interpretation and enforcement from the public prosecution authority. The article suggests that the judiciary is now conducting research on the legitimacy of mining and cryptocurrency trading and that this could create problems for rule-breakers. Those who currently managed to avoid the rules still can’t stay out of the hot water.
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