Choose your language:
China is cracking down hard on cryptocurrencies, and this is making it tough for crypto-related companies to operate in the country.
The People’s Bank of China (PBoC) issued a ban on cryptocurrency services and transactions last month. This resulted in several companies shutting down their operations and exiting the Asian country. Leading crypto exchange Huobi announced last week that it is closing Chinese accounts on its platform. New users in China can also not open accounts with the cryptocurrency exchange as it complies with China’s latest laws.
Bitmain, the world’s leading cryptocurrency mining manufacturer, also announced that it is stopping its operations in Southern China and halting sales in the country. The mining machine manufacturer is moving its operations outside China in the coming weeks. Sparkpool, the second-largest Ethereum mining pool in the world, stated earlier this week that it would be shutting down its operations in the Asian country and abroad. The move is to protect its users’ assets due to the regulatory crackdown in China.
Alibaba, one of the world’s leading e-commerce platforms, announced this week that it would ban the sales of crypto mining equipment on its platforms starting October. The e-commerce giant said it is making the changes due to the tough regulations rolled out against crypto services and transactions in China. Another report showed that more than 18 companies have already announced their exit from China. Cryptocurrency exchanges BitMart and Biki said they would no longer be providing services to traders and investors in China.
The Chinese government went a step further with its cryptocurrency sanctions by banning its citizens from accessing cryptocurrency data websites. Earlier this week, China’s Great Firewall blocked access to numerous cryptocurrency data sites, including the popular ones like CoinMarketCap, CoinGecko and TradingView.
Europe has officially become the leading continent in the cryptocurrency space in terms of market cap. A new report by Chainalysis revealed that the European cryptocurrency economy is worth over $1 trillion. With the total crypto market cap now around $2 trillion, Europe accounts for more than half of that. The report said the decline in cryptocurrency activities in China and Eastern Europe in recent years due to sanctions has allowed Europe to take over the top spot. Numerous cryptocurrency millionaires and billionaires have left Asia and moved to Europe due to the more favourable cryptocurrency regulations. Furthermore, Europe should thank the entry of institutional investors and the boom in decentralised finance (DeFi) for the massive growth of its cryptocurrency market.
The Commodities Futures Trading Commission (CFTC) is cracking down on companies that are offering cryptocurrency options trading services in the United States without registering with them. The regulator fined leading crypto exchange Kraken $1.25 million for failing to register with it as a futures commission merchant. The CFTC further said Kraken is offering margin transactions in cryptocurrencies without registering with the regulatory agency. The regulator also charged 12 other cryptocurrency entities for providing similar services without first registering with it. However, the CFTC is yet to fine these cryptocurrency companies.
Kraken Security Labs published a report earlier this week citing numerous security flaws with some Bitcoin ATMs in the United States. According to the security team at Kraken, the Bitcoin ATMs issued by General Bytes were found to have some flaws, such as configuration with the same default admin QR code. The team also said they discovered other vulnerabilities in the ATM’s management system. Hence, users are advised to be careful when using the Bitcoin ATMs as their transactions could easily be affected. General Bytes is currently the second-largest manufacturer of Bitcoin ATMs in the world.
Bitfinex, one of the leading cryptocurrency exchanges in the world, experienced an outage again this week. This comes after it experienced a similar platform outage in July. The outage lasted for nearly 3 hours, with Bitfinex halting operations during that period. The Bitfinex technical team investigated the issue with the platform during the outage and fixed it within a few hours. However, Bitfinex’s outage didn’t affect the broader cryptocurrency market as Bitcoin’s price remained above $43,000 at the time of the event.
Coinbase wants to make it easier for users in the United States to buy cryptocurrencies. This week, the crypto exchange said it would launch a new service that allows its US customers to receive their paycheck directly into their Coinbase wallets. The feature is designed to enable users to make regular cryptocurrency trades and also enjoy other services like spending their cryptocurrencies using the Coinbase card. Coinbase is also partnering with more companies to add its accounts to their payrolls, thus making it easier for employees to choose Coinbase as their preferred payment destination.
Dapper Labs is one of the leading non-fungible token (NFT) developers in the world. After gaining success with the NBA Top Shot marketplace, Dapper Labs wants to replicate something similar with the National Football League (NFL) According to Sports Business Journal, Dapper Labs has partnered with the NFL and the NFL Players Association (NFLPA) to create an NFT marketplace. The deal will allow Dapper Labs to develop a marketplace for the NFL and create NFTs and other digital collectibles that will be available to the fans. The development comes just days after Dapper Labs raised $250 million from its investors and also partnered with the Spanish LaLiga on a similar deal.
Keep updated with our round the clock and in-depth cryptocurrency news.
Unsub anytime
No SPAM ever!
After signing up, you may also receive occasional special offers from us via email. We will never sell or distribute your data to any third parties. View our privacy policy here.
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.
Weekly report: China’s crypto crackdown forces companies out
