China Crypto Roundup (Sep. 20-Sep. 26) ：China Send Out The Strongest Regulatory Signal, Crypto Companies Announce Their Withdrawal
1. Chinese Internet giant Tencent registered Metaverse related trademarks again
This time for ‘QQ music’ and ‘Tencent Music’. Prior to this, Tencent had applied for the registration of dozens of Metaverse trademarks.
2. Actor and singer Edison Chen shared its NFT collection
On Sep 23, actor and singer, the founder of fashion brand CLOT, Edison Chen shared his NFT collection HeartNFTs on his Instagram, writing “First attempt to enter the digital world.”
3. HUAWEICLOUD officially launched Blockchain services
On September 23, Huawei Vice President and Huawei Cloud CEO Zhang Pingan announced that Huawei Cloud officially launched blockchain services. Zhang said that using a newly developed blockchain engine, a single chain can support 50,000 product information per second on chain at the same time, and the throughput has increased by 10 times. At present, this service has been implemented in the e-commerce industry and can be used for cross-border data traceability throughout the life cycle of wine and other products.
It is reported that Huawei Cloud’s new blockchain service will support 10,000 participants, and at the same time open a blockchain-based digital copyright DCI protection service.
4. Chinese fashion magazine GQ will collaborate with Coach to create NFT artwork
The collaboration will explore the possibility of artwork immortality in the cyber world. COACH NFT artwork selects the most iconic collocation of COACH FOREVER 2 series, combining COACH American fashion and China’s ICONIC city landmarks, with a new visual style given by illustrators, and a total of 6 NFT artworks.
5. Director of the Payment and Settlement Department of the People’s Bank of China (PBoC) on China Payment and Clearing Forum: Virtual currency has broken away from the existing payment system and has brought major challenges
“The challenge of virtual currency is huge. When the traditional financial system responds to competition in the financial industry of large financial technology platform companies, it can rely on traditional methods such as law and supervision to increase anti-monopoly efforts and strengthen personal privacy and information protection.However, in the face of the new virtual currency and related dark web incidents, how to monitor, intervene, prevent, and punish all requires legal basis and innovative application of technical means. “Wen Xinxiang said.
Wen also divides virtual currencies into two categories: one is represented by Bitcoin, the attributes of virtual assets are more prominent, which to a certain extent become a reservoir of excess liquidity, and the other is stablecoin represented by Tether, more like play the role of payment tools. From the perspective of infrastructure, blockchain is equivalent to a virtual currency payment system and transaction database. Virtual currency exchanges are equivalent to a central counterparty and partly assumes the functions of a market maker.
6. The China Development and Reform Commission issued a notice on rectifying virtual currency “mining” activities
The notice lists the requirements for rectifying virtual currency “mining” activities:
- Comprehensively sort out and investigate virtual currency “mining” projects
- Investment and construction of new projects are strictly prohibited: the virtual currency “mining” activities are listed as eliminated industries. It is strictly forbidden to carry out virtual currency “mining” activities in the name of a data center. t is strictly forbidden to provide fiscal, taxation and financial support for new virtual currency “mining” projects.
- Speed up the orderly exit of existing projects: Virtual currency “mining” projects are not allowed to participate in the electricity market. Stop all financial and taxation support for virtual currency “mining” projects. Stop providing financial services for virtual currency “mining” projects.
7. The People’s Bank of China (PBoc) issued a notice to further prevent and deal with the risk of speculation in virtual currency transactions, and answered reporters’ questions about the notice
The following are the main points of the notice:
- Virtual currency does not have the same legal status as fiat. Virtual currencies such as Bitcoin, Ether, and Tether have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed accounts or similar technologies, and exist in digital form. They are not legal and should not and cannot be used as currency in the market.
- The provision of services by overseas virtual currency exchanges to Chinese residents through the Internet is also an illegal financial activity. For domestic staff of relevant overseas virtual currency exchanges, as well as legal persons, unincorporated organizations and natural persons who know or should know that they are engaged in virtual currency-related businesses and still provide them with services such as marketing promotion, payment and settlement, technical support, etc., they shall be investigated in accordance with law responsibility.
- Financial institutions and non-bank payment institutions shall not provide services for virtual currency-related business activities. Financial institutions and non-bank payment institutions shall not provide services such as account opening, fund transfer, clearing and settlement for virtual currency-related business activities, shall not include virtual currency in the scope of collateral, shall not carry out virtual currency-related insurance business, and clues about violations of laws and regulations should be reported timely.
- Strengthen the management of Internet information content and access related to virtual currency. Internet companies are not allowed to provide services such as online business premises, commercial display, marketing promotion, and paid diversion for virtual currency-related business activities. If clues of violations of laws and regulations are found, they should promptly report to relevant departments, and provide technical support and assistance for related investigations and investigations. The competent authorities of network information and telecommunications shall promptly shut down Internet applications such as websites, mobile applications, and small programs that carry out virtual currency-related business activities in accordance with the law.
7. Sparkpool, the largest Ethereum mining pool, will shut down services in mainland China
In order to comply with China’s latest regulatory policies, Spark Pool has decided not to provide mining pool services to users in mainland China. The specific shutdown plan will be announced in the near future. It said that it will actively cooperate with the regulatory measures of relevant departments. Oklink shows that the Spark Pool accounts for 23% of the entire Ethereum network’s computing power.
8. Huobi stopped new user registration in Mainland China and will gradually retire existing mainland China users
The country/region selection for Huobi APP registration has deleted Mainland China, and Taiwan and Hong Kong are still retained. Also it announced that it will gradually retire existing Mainland China user accounts by 24:00 (UTC+8) on Dec 31, 2021.
9. Binance responded its next move in China
Binance stated that Chinese users have been unable to access its website since 2017, and there is currently no exchange business in China. It further stated that Binance attaches great importance to compliance obligations and always insists on complying with the relevant requirements of local regulatory agencies no matter where it operates.
10. More crypto exchanges will leave China
Crypto exchange BHEX and OTC platform RenrenBit decided to shut down and the latter will buy back its tokens. Though registered abroad, both companies teams are based on China. More similar announcements may come.
Another crypto exchange BiKi will stop the registration and KYC of mobile phone numbers in Mainland China. Starting from 00:00 on October 1st (Singapore time), the platform will block IPs in Mainland China. Users are required to withdraw relevant assets in advance.