Bitcoin mining activity could come to an end as the industry is used to knowing about it. The Asian giant has decided to strengthen its regulations in this sector; Many miners have chosen to migrate to friendlier countries.
The investment firm Sino Global Capital announced via Twitter that China could step up its interventions in its markets. Therefore, they have taken stricter control measures to “protect investors”. As a result, the bitcoin and crypto industries in China are “singing the cool down”.
China appears to have two goals in the crypto industry, BTC mining and leverage trading. Sino Global Capital sees that the Chinese regulators are giving these articles priority in the short term. The company’s report states:
In order to prevent scammers from making a comeback and deliberately manipulating the market, there is still a high probability that more supervisory rules will gradually be implemented.
Usually viewed as FUD (Fear, Uncertainty, and Doubt), China’s move against Bitcoin seems to be materializing this time around. The balance of the industry, at least in the mining sector, could shift. This sector could migrate completely to the west.
In the US, cities like Miami and Texas could welcome the bitcoin mining operations. Francis Suarez, the mayor of Miami, appears to be in negotiations with some miners. The city has nuclear power as part of its electricity network and could offer attractive tariffs. Suarez said:
Bitcoin miners want to hit a certain kilowatt price per hour, and that’s what we’re working with them.
China is targeting Bitcoin trading with leverage
Bitcoin-based derivatives traders using leverage could see the worst take. Sino Global Capital records reports from people who have “received calls from the police”. The local authorities are apparently inquiring about the crypto-related activities of the citizens.
Exchange platforms could take steps to evade the authority’s control. Huobi, one of the most important exchanges in China, will reduce its leverage offer from 125x to 5x, according to Sino Global Capital. For his youngest customers, the measures are even more difficult, they will not be able to use any leverage.
As predictable, China as a destination of various sectors and markets, including TradFi. The report indicates that two major stock exchanges, FUTU and Tiger, will no longer provide Bitcoin-related data.
Both confirmed that their latest app versions have exposed CME BTC’s market intelligence and trading functions. FUTU customer service announced that the provision of market information and transactions has been suspended due to regulatory requirements.
The investment firm believes the Chinese government sees “speculative” Bitcoin trading as a threat to the country’s economic and financial stability. Hence, they took these measures. Sino Capital concludes that the trend towards introducing more crypto regulations is increasing.
Global crypto policy is tightening: According to the Financial Times, the Basel Committee on Banking Supervision has demanded that cryptocurrencies have the strictest capital requirements of all assets.
At the time of writing, BTC is trading at $ 36,463 and is trending down on the daily chart. The first cryptocurrency by market capitalization appears to be responding to a collapse in the stock market. BTC needs to keep the line at current levels or it risks falling further in the short term.