China Crypto Roundup (June. 21-June. 27)：China Continue Crypto Cracking Down, Miners Looking for Overseas Solutions
1. The People’s Bank of China (PBoC) talked to Chinese banks and payment institutions on the issue of providing services for virtual currency transactions by banks and payment institutions
Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank of China, Industrial Bank and Alipay (China) Network Technology Co., Ltd are among the list.
These institutions are required to perform their customer identification obligations and must not provide products or services such as account opening, registration, trading, clearing, and settlement for related activities.
Institutions must comprehensively investigate and identify virtual currency exchanges and over-the-counter dealers’ accounts, and cut off the payment link for transaction funds in a timely manner; they must analyze the capital transaction characteristics of virtual currency trading hype activities, increase technical input, improve abnormal transaction monitoring models, and effectively Improve monitoring and identification capabilities; improve internal working mechanisms to ensure that relevant monitoring and handling measures are in place.
2. Caixin: “global pricing power of Bitcoin” is a false proposition
China’s leading financial media Caixin published an article pointed out that fighting for the so-called “global pricing power of Bitcoin” is a false proposition, and China no longer welcomes the existence of energy-intensive virtual currency mining farms.
The article stated that the Chinese authorities have decided to move towards a carbon-neutral green transformation. They will never accept the issuance and hype of non-digital fiat virtual currency.
3. Chinese miners are not familiar with the overseas environment, and moving overseas is destined to be a long process
On June 22, a mining industry insider posted that Chinese miners actually tried to “move overseas” a few years ago, but it turned out that the overall domestic cost is still the lowest.
Specifically, bare electricity in Canada and the US is mostly at 0.3 cents, but construction + labor + operation and maintenance + taxation, and various environmental protection standards, have long cycles and high costs. Electricity prices are cheap in the Far East, but miners are worried about the instability of the local situation. Georgia and Kazakhstan have electricity, but the process is sometimes the same as Vietnam and India. The temperature in Malaysia and Thailand is too high, and they are inferior to China in terms of administrative efficiency and manpower. Mining in Africa and Iran have only been seen in advertisements, and they don’t know who actually went there.
At present, based on the policy on Bitcoin mining, Chinese miners have begun a long overseas migration. According to media reports, on June 21, BIT Mining announced that the first batch of 320 miners had arrived in Kazakhstan.
At the same time, Fenghua International Express disclosed that it had airlifted a batch of Bitcoin miners to Maryland, USA.
It is reported that this is only the “vanguard” in the army of Bitcoin miners that China has shut down, accounting for a very low proportion.
4. Canaan set up of its first overseas after-sales service center in Kazakhstan
The service center will provide timely after-sales services, including machine testing, warranty services, machine maintenance, technical consultations, and many more.
5. Bitmain suspended sale of spot machine
Due to the influx of a large number of second-hand miners into the market recently, Bitmain said that to relieve customer sell pressure, it will temporarily suspend the sale of spot machines.
In addition, Bitmain has announced a full overseas shift, with some middle and senior staff moving overseas.
Previously, in Chengdu, Sichuan Province, miner manufacturer Bitmain held a meeting. At the meeting, it was emphasized that Bitmain will continue to look for more high-quality power resources, especially clean energy power with customers. Its customers have begun to connect overseas hashrate, mining farms and other resources with each other.
In response to possible mining machine maintenance problems, Bitmain has launched a HUB warehouse service, which is expected to reduce the maintenance time of overseas miners from three weeks to four days.
6. Chinese scholars agreed that Bitcoin is similar to gold
Recently, in a financial summit in China, many economists and scholars expressed their views on Bitcoin. Most of them agree that investing in Bitcoin is like investing in gold.
Li Yang, chairman of the National Finance and Development Laboratory and member of the Chinese Academy of Social Sciences, said that Bitcoin cannot be regarded as a scam. It is a new data asset. “People can invest in it like gold, but it is not currency. From an investment point of view, Bitcoin, like gold, can be invested.”
Yao Yang, dean of the National Development Research Institute of Peking University, said that investing in Bitcoin is the same as investing in gold. It is a matter of belief. “Gold is actually worth nothing, but everyone believes that it is valuable, so gold will always have value. If Bitcoin has established this belief, then my prediction is that it will definitely appreciate.”
Yao also shared his opinion on the value of Bitcoin. He believes that as the cost of Bitcoin “mining” becomes higher, the price of Bitcoin will continue to rise, and the final price will be equal to the cost of mining the last coin.
“My judgment is that the value of the last Bitcoin is equal to the last one you mine. You will find that it is in line with economic principles, and the marginal cost is its final price.”