China to Crypto Miners: Time to Make an “Orderly Exit”
- Chinese mining operators were told that they needed to have a plan to cease operations by Jan. 10.
Recently, the Wall Street Journal issued a report saying that China has ordered its “army of Bitcoin miners” to cease all operations.
This latest announcement comes in the wake of last week’s reports from Bloomberg and Reuters that China was planning to limit the amount of electricity allotted for the mining of cryptocurrency.
Discover credible partners and premium clients at China’s leading finance event!
China has a very storied history when it comes to cryptocurrency bans. In September, the country banned ICOs and domestic exchanges in a set of bans that sent the global cryptocurrency markets spiraling. Rumours that the Chinese government was planning a mining ban originally circulated in late 2017, although they were proven to be false at the time.
The reason for the order, which said that BTC miners should make an “orderly exit” from China, was revealed in a leaked memo dated January 2, 2018. In addition to using up “huge amounts of resources,” the memo accused miners of “[stoking] speculation of ‘virtual currencies.’”
Chinese miners were told that although their exit could be “gradual,” they needed to “make a plan” before January 10th.
The memo came from the 'Leading Group of Internet Financial Risks Remediation', the same regulator that set China’s original set of crypto-related bans into motion. While the group does not have any control over the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and distribution of electricity in China, TechCrunch reported that it is “an influential political vehicle” that happens to have Pan Gongsheng, deputy governor of the People’s Bank of China, at the helm.
Notice from China special rectification on risks in Internet Finance department to local government to make a plan before Jan 10th - “ lead mining factories quit gradually” #btc #bitcoin #BitcoinMining with Central Bank official Chop. Prepare for the roller coaster!!!! pic.twitter.com/OLv8j1veHb
— ? (@cryptovenus) January 5, 2018
Because of cheap electricity costs, China has long been one of the world’s most prominent BTC-producers--Singaporean news source The Straits Times reported that China is responsible for the production of as many as three-fourths of the world’s total Bitcoin supply.
Accordingly, Chinese mining industry does indeed use a “huge amount of resources”. According to one controversial report, the energy needed to power the Bitcoin network is greater than or more than the energy needed to power 159 individual countries.
However, cheap electricity costs in China have been offset in the past by political instability with regards to cryptocurrency. As a result, Chinese mining operations have been relocating elsewhere in the world over the past several months; Bloomberg reported that Chinese mining-collective operator Bitmain was already setting up operations in Singapore, the US, and Canada. ViaBTC has operations in the US and Iceland.
Coindesk reported just yesterday that the Canadian Quebec region has become a particularly attractive site for crypto mining because of the region’s access to cheap electricity from sustainable sources--the region is one of the world’s largest producers of hydropower.
It seems that this really may be the end for cryptocurrency in China. Rumors that some of China’s crypto bans may be reversed circulate every now and again--for the moment, however, the future doesn’t look so bright.
Recently, the Wall Street Journal issued a report saying that China has ordered its “army of Bitcoin miners” to cease all operations.
This latest announcement comes in the wake of last week’s reports from Bloomberg and Reuters that China was planning to limit the amount of electricity allotted for the mining of cryptocurrency.
Discover credible partners and premium clients at China’s leading finance event!
China has a very storied history when it comes to cryptocurrency bans. In September, the country banned ICOs and domestic exchanges in a set of bans that sent the global cryptocurrency markets spiraling. Rumours that the Chinese government was planning a mining ban originally circulated in late 2017, although they were proven to be false at the time.
The reason for the order, which said that BTC miners should make an “orderly exit” from China, was revealed in a leaked memo dated January 2, 2018. In addition to using up “huge amounts of resources,” the memo accused miners of “[stoking] speculation of ‘virtual currencies.’”
Chinese miners were told that although their exit could be “gradual,” they needed to “make a plan” before January 10th.
The memo came from the 'Leading Group of Internet Financial Risks Remediation', the same regulator that set China’s original set of crypto-related bans into motion. While the group does not have any control over the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and distribution of electricity in China, TechCrunch reported that it is “an influential political vehicle” that happens to have Pan Gongsheng, deputy governor of the People’s Bank of China, at the helm.
Notice from China special rectification on risks in Internet Finance department to local government to make a plan before Jan 10th - “ lead mining factories quit gradually” #btc #bitcoin #BitcoinMining with Central Bank official Chop. Prepare for the roller coaster!!!! pic.twitter.com/OLv8j1veHb
— ? (@cryptovenus) January 5, 2018
Because of cheap electricity costs, China has long been one of the world’s most prominent BTC-producers--Singaporean news source The Straits Times reported that China is responsible for the production of as many as three-fourths of the world’s total Bitcoin supply.
Accordingly, Chinese mining industry does indeed use a “huge amount of resources”. According to one controversial report, the energy needed to power the Bitcoin network is greater than or more than the energy needed to power 159 individual countries.
However, cheap electricity costs in China have been offset in the past by political instability with regards to cryptocurrency. As a result, Chinese mining operations have been relocating elsewhere in the world over the past several months; Bloomberg reported that Chinese mining-collective operator Bitmain was already setting up operations in Singapore, the US, and Canada. ViaBTC has operations in the US and Iceland.
Coindesk reported just yesterday that the Canadian Quebec region has become a particularly attractive site for crypto mining because of the region’s access to cheap electricity from sustainable sources--the region is one of the world’s largest producers of hydropower.
It seems that this really may be the end for cryptocurrency in China. Rumors that some of China’s crypto bans may be reversed circulate every now and again--for the moment, however, the future doesn’t look so bright.