FSC: Crackdown on bitcoin mining and trading practices, focus may first fall on violations targeting retail investors outside the circle

The Financial Stability Development Commission of the State Council said it will strengthen the supervision of financial activities of platform companies, crack down on bitcoin mining and trading, and resolutely prevent the transmission of individual risks to the social sector.

On May 21, at the 51st meeting of the Financial Stability Development Committee of the State Council, Vice Premier Liu He, director of the Financial Committee, said he wanted to strengthen the all-round scanning and early warning of financial risks. In particular, he mentioned strengthening the supervision of financial activities of platform companies, cracking down on bitcoin mining and trading, and resolutely preventing the transmission of individual risks to the social sector. The Financial Committee will also focus on reducing credit risks, reforming medium-sized financial institutions, and severely punishing illegal financial activities.

FSC: Crackdown on bitcoin mining and trading practices, focus may first fall on violations targeting retail investors outside the circle

Thomas Heller, founder of crypto mining company Compass Mining, tweeted that local miners are “unsure” how the recent negative Bitcoin news will affect the industry. Bitcoin (mining) has been in the negative news a lot, but it’s worth monitoring. The Chinese miners I spoke with are unsure of the impact at this point.

FSC: Crackdown on bitcoin mining and trading practices, focus may first fall on violations targeting retail investors outside the circle

Previously, the Beijing Municipal Bureau of Economy and Information Technology has confirmed the release of the “Urgent Notice on Mapping the Situation of Data Centers in the City Involving Bitcoin and Other Cryptocurrency Mining Businesses”. The main focus is on sorting out the mapping from the perspective of the type of business and energy consumption carried by the data center for the normal business work of the bureau.

Market analyst zerohedge believes that the move is related to the digital yuan, which is being fully released. He referred to the digital yuan as a “failure”. He described the FSC guidelines as a “venting of the crypto market”.

FSC: Crackdown on bitcoin mining and trading practices, focus may first fall on violations targeting retail investors outside the circle

The founder of Primitive Capital, Hugh Wan, described the incident as “like 94 before and after”, and on the afternoon of September 4, 2017, the People’s Bank of China issued an announcement on its website saying that domestic financing activities through the issuance of tokens, including initial token offerings (ICOs), are proliferating and speculation is prevalent. is prevalent, suspected of engaging in illegal financial activities, and seriously disrupting the economic and financial order.

Bitcoin fell to an intraday low of $36,679 on this major bearish news release, but this time the price shock may be relatively small considering the large number of highly leveraged speculators who have already been liquidated from the market in the 519 selloff.

On Thursday (May 20), the U.S. Treasury said it would take tough measures against those using bitcoin for “illegal activities, including tax evasion.” It will require all cryptocurrency transactions over $10,000 to be reported to the IRS. “As with cash transactions, businesses that acquire cryptocurrency assets with a fair market value in excess of $10,000 will also be required to report.” The U.S. Treasury said full reporting is necessary to minimize the incentive and opportunity to divert income away from the new information reporting system, even if cryptocurrencies represent only a small portion of current business transactions.

Posted by:Tracey,Reprinted with attribution to:https://coinyuppie.com/fsc-crackdown-on-bitcoin-mining-and-trading-practices-focus-may-first-fall-on-violations-targeting-retail-investors-outside-the-circle/
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