Huobi suspends registration of mainland users, SOL increases 4252% during the year, and cryptocurrency hype has new tricks

Strict supervision of virtual currencies is sweeping the world, and the United States, the European Union, and China are all absent.

On September 24, the People’s Bank of China issued a notice stating that financial institutions and non-bank payment institutions shall not provide services for virtual currency-related activities, such as account opening, fund transfer, clearing and settlement, etc. Virtual currency must not be included in the scope of collateral, and insurance business related to it must not be carried out.

On September 26, the virtual currency exchange Huobi stated that in response to local regulatory requirements, Huobi Global had suspended the registration of new users in mainland China on September 24. The specific approach is to plan to complete the orderly clearance and withdrawal of the existing users whose identity is authenticated as mainland China before 24:00 on December 31 this year, while ensuring the safety of user assets.

And just the day before, another virtual currency trading platform BHEX said that from now on, the platform service will be permanently closed. “BHEX has always maintained full and transparent assets, and we can achieve 100% cash withdrawal from users.”

As major central banks around the world are also exploring official digital currencies, virtual currencies have to face more regulatory issues.

Investors in a game of policy

Power plants shut down, machines go to sea, absenteeism and migration, and the hash rate is reduced. At least on the surface, after several rounds of regulatory containment, China’s domestic mining and trading activities have clearly disappeared.

On September 24, as soon as the aforementioned notice from the People’s Bank of China was issued, the virtual currency market plummeted.

Coindesk data show that the Bitcoin price fell about 10%, Ethernet currency fell below $ 3000 mark. As of the close of US stocks on September 24, blockchain concept stocks generally fell, Bit Mining fell 9.88%, Canaan Technology fell 21.16%, Coinbase fell 2.39%.

According to data from Bitcoin Homeland, 105,000 people broke their positions within 24 hours, and the amount of liquidation was as high as RMB 3.126 billion.

But in the worldview of some strong believers in Bitcoin, this does not pose a big problem. “For one thing, we are only technologists, and we firmly believe in the value of Bitcoin and the meaning behind it,” said an investor with an account holding about $400,000 in Bitcoin. Secondly, we are looking at long-term, or ultra-long-term. The longer the time axis is stretched, the more the fluctuations can be so small that they are completely negligible.

“Although most of the trading activities are concentrated in the Asia-Pacific region, in essence, foreign financial markets are what we care more about.” The investor said.

However, the international financial situation may not be so good. Even if the regulatory tone and actual actions released by major central banks are not enough to trigger a major volatility in the virtual currency market, a more material problem is that with the stimulus of various currencies, the faucet is tightened a little bit. How much funds will flow into the virtual currency field, and how much will be withdrawn?

Powell made it clear that Taper is approaching at the Fed’s meeting on interest rates in September. The Norges Bank subsequently became the first G10 advanced economy to raise interest rates. The Brazilian Central Bank has raised interest rates by another 100 basis points.

However, the entry of institutions may continue to support virtual currencies. For example, Invesco Ltd. is cooperating with digital asset company Galaxy Digital Holdings to develop a “full digital asset listed in the United States and supported in kind” fund.

In addition, under frequent targeted attacks, experienced “veteran” traders seem to have become accustomed to viewing regulatory signals as “a brief burst of noise.”

A virtual currency trader believes that this round of blows are not significantly different from previous ones. “Since this year, we have witnessed too many strong or weak regulatory measures. The market has already expected it. We expected that the price of Bitcoin would be pulled back in the middle of the night. The problem of carbon neutrality in domestic mining has already been resolved. , There are no industrialized mining bases in the country. It is expected that Bitcoin will have a second low, estimated to be around 41,000, and then pull it back to 43,000.”

The sell-off on Friday night caused Bitcoin to fall by about 5%. Ether fell below the support level of US$3,000 and fell by about 8%. The price of Bitcoin then gradually recovered and is currently stable above the support level of US$41,000.

“About 10% of the world’s bitcoin trading volume comes from OKEX and Huobi,” CoinShares investment strategist James Butterfill said on social media. “In 2019, the value was 30%. But even so, I think last Friday The policy should not have a significant impact on the overall virtual currency price.”

However, the aforementioned traders reminded that the high volatility of virtual currencies is prone to damage or liquidation, and it is not recommended to increase leverage. “In view of regulatory pressure, virtual currency volatility will remain high.”

“In the final analysis, virtual currency is a self-fulfilling belief game.” She added.

Bitcoin hash rate (hash rate) changes / image source: Coinbase

Bitcoin hash rate (hash rate) changes / image source: Coinbase

Decryption of fund transfer: SOL rose by 4252% during the year

Some people have liquidated their positions, some have bought or opened positions on dips, and some have gradually moved their funds to other SOL tokens. SOL is the native token on the Solana chain. It uses a delegated PoS consensus algorithm. Miners entrust SOL to verification nodes to participate in the maintenance of the network and receive rewards. SOL has three main use cases: pledge, transaction fees, and governance.

According to CoinMarketCap data, as of September 26, SOL’s annual growth rate has reached about 4252%, with a market value of about 37.2 billion U.S. dollars, which has jumped to the seventh place, and the transaction volume has been in the top three in the near future.

Huobi suspends registration of mainland users, SOL increases 4252% during the year, and cryptocurrency hype has new tricks

  Cryptocurrency trading volume in a week/Image source: CoinMarketCap

In addition, the rival of the Ethereum blockchain, Cardano, and the TV and wireless service provider Dish Network stated on September 26 that the two parties have reached an agreement that includes the integration of the blockchain into the telecommunications business and helping Dish’s customers. Provide digital identification services.

Global consulting firm FundStrat stated in the report that Kazakhstan has always been one of the biggest beneficiaries of China’s strict supervision of crypto mining. The electricity price of the former is the cheapest in the world, and the cost per kilowatt/hour is about 0.03-0.04 US dollars (depending on the exchange rate). “

Regulation: Prevent the digital asset market from growing into “a wild west”

Two sides of the same thing. As soon as the Chinese central bank’s regulatory policy was implemented on September 24, Pat Toomey, the chief Republican Senate of the US Senate Banking Committee, said that this “is a huge opportunity for the United States”. 

Pat Toomey also claimed on August 26 that he was seeking opinions and legislative recommendations to ensure that federal laws support the development of emerging cryptocurrencies and open blockchain network technologies, while continuing to protect cryptocurrency investors.

However, maybe this is not a good time. After Coinbase’s embarrassing concessions, the US SEC’s verbal warnings on virtual currencies have been upgraded from mere verbal warnings to actual measures.

On September 8, local time, Coinbase posted a blog post on its official website stating that it had received a notice from the SEC stating that if it continues to delay Lend products, the SEC will take enforcement actions. Lend will allow users to obtain 4% of revenue by lending tokens. Two weeks after Coinbase publicly expressed its dissatisfaction, doubts and shocks with the SEC, its latest statement last week stated that it plans to shelve the Lend product under USDC APY, and the waiting list of customers for this project will also be suspended.

“We made a difficult decision not to start the Lend project under USDC APY. At the same time, we also stopped the waiting list for this project. We hope to move the work to the next direction.” The statement stated that Coinbase will not Stop looking for ways to bring innovative and credible programs and products to customers.

In the Senate hearing held on September 14 local time, SEC Chairman Gary Gensle stated that he has asked the SEC to work with other regulatory agencies and with the help of Congress to provide and sell virtual currencies. Encrypted trading and lending platforms, stable coins, investment tools that provide exposure to encrypted assets or encrypted derivatives, and encrypted asset custody strengthen investor protection.

Subsequently, on September 21, local time, the American Financial Reform Education Foundation, the American Consumer Federation and other institutions jointly wrote to the SEC, saying that many virtual currency projects ignored the investor protection rules and demanded the SEC to pay more attention.

“Without important regulatory guidance, the digital asset market has been born and has grown into a wild west,” the letter said. The commission and other federal financial regulators urgently need to implement this law to better protect investors and improve digital assets. The integrity and stability of the asset market.

In the latest interview, former US Treasury Secretary Lawrence Summers said that considering the huge amount of funds involved in virtual currencies, it is unrealistic for the industry to operate secretly without government supervision. ” When you secretly own large sums of money, you are at risk of money laundering, supporting criminal activities, and risking innocent people being deceived.”

“The crypto industry should abandon the idea that it will become a liberal paradise,” he added, adding that all industries of systemic importance need to recognize this. “Not only to protect consumers, but also to protect themselves.”

Fed Chairman Powell pointed out at a press conference on interest rate policy in September that a large number of private innovations are currently carried out outside the scope of supervision. “Innovation is great, and the economy depends on innovation. But when it comes to public funds, it is necessary to ensure that appropriate regulatory protection measures are in place, and the current supervision is indeed not in place in some cases.”

Therefore, Powell pointed out that in view of the above considerations, with the creation of countless private virtual currencies, the Federal Reserve is actively evaluating whether to issue digital currencies, and if so, in what form.

The latest statement of the Central Bank of Chile shows that it will set up a working team to study the issuance of digital currency (CBDC), and plans to release a digital currency white paper in the first quarter of 2022, proposing an action framework and strategic goals, action routes and expected results.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/huobi-suspends-registration-of-mainland-users-sol-increases-4252-during-the-year-and-cryptocurrency-hype-has-new-tricks/
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