|
On October 21, the National Development and Reform Commission publicly solicited opinions on the revision of the "Guidelines for Industrial Structure Adjustment (2019 Edition)", and proposed to list "virtual currency 'mining' activities" as a list of eliminated industries.
Cryptocurrency prices plummeted in response.
As of 8:00 a.m. Beijing time on October 22, the price of Bitcoin was $621.9917 million per coin, a daily drop of 5.79%.
Previously, influenced by the official listing of the first Bitcoin futures ETF in the United States, on October 20, the price of Bitcoin hit a new high of US$66,900.
"In addition to the futures Bitcoin ETF, there is a high probability that the first spot Bitcoin ETF in the United States will be approved in the near future. The popularity of Bitcoin is getting higher and higher." On October 21, TOP Network co-founder Noah Wang told Times Finance. 1634863384(1).pngBitcoin transaction price trend from July 1 to date (Source: Binance) Chen Bo, director of the Digital Finance Research Center of the Central University of Finance and Economics and deputy director of the Bay Area International Fintech Laboratory, said in an interview with Times Finance, "The regulatory measures for the virtual currency industry at home and abroad are very different. As far as China is concerned, due to the complex international environment in recent years, it emphasizes the security and stability of the financial system and adopts a strict regulatory model for Bitcoin." Is a spot Bitcoin ETF coming too?
On October 20, asset management company VanEck announced that its Bitcoin futures ETF has been approved by the U.S. Securities and Exchange Commission (SEC). The SEC allows VanEck to launch the fund after October 23, making it the second Bitcoin futures ETF approved by the SEC after BITO.
On October 19, the ProShares Bitcoin Futures ETF was officially listed on the NYSE Arca market with the code BITO. The opening price on the first day was $40.89 and the final closing price was $41.94.
According to Bloomberg data, the ETF's turnover exceeded 24 million units, and the total trading volume on the first day was close to US$1 billion. This scale is second only to BlackRock's carbon neutrality ETF, making it the second highest first-day trading volume in history.
Public information shows that the ProShares Bitcoin Futures ETF is registered with the U.S. Commodity Futures Trading Commission (CFTC) and trades Bitcoin futures contracts through the Chicago Mercantile Exchange (CME), charging an annual management fee of 0.95% of the investment value. ProShares is owned by ProFunds Group, a professional exchange-traded product provider and one of the largest ETF issuers in the United States.
With the launch of the Bitcoin futures ETF, the price of Bitcoin broke through a new high of $66,000 per coin.
However, it is worth noting that the Bitcoin futures ETF does not directly invest in Bitcoin spot. The index tracked by the transaction is anchored to CME's near-month Bitcoin futures. Ordinary investors only need to buy and sell stocks with legal currency in the securities market. ProShares will sell near-term contracts and purchase forward contracts through swap contracts, track Bitcoin futures contract prices and indices, and obtain stable capital appreciation through refined management of contract exposure.
Although the stimulating effect of Bitcoin futures ETFs is far from comparable to that of spot ETFs, the launch of futures ETFs means that the door that regulators have closed to spot ETFs is slowly opening.
Since the Winklevoss brothers submitted the first Bitcoin spot ETF application in the United States in July 2013, the SEC has rejected more than a dozen applications for Bitcoin spot ETFs from fund companies, including well-known companies such as Grayscale, ProShares, and Bitwise.
Noah Wang believes that there is a high probability that the first spot Bitcoin ETF in the United States will be approved in the near future. The increasing popularity of Bitcoin has also attracted a large number of traditional investment institutions to enter the market. Even if it is not approved for the time being, it is an inevitable trend for Bitcoin to enter the traditional investment field.
"The scale of the U.S. Bitcoin market is large, and there will definitely be more and more corresponding financial derivatives. It is only a matter of time before the spot Bitcoin ETF is listed." Chen Bo told Times Finance on October 21. 1634864219(1).pngOne-day decline of some cryptocurrencies (Source: Website screenshot) China strengthens virtual currency regulation
On October 21, the National Development and Reform Commission publicly solicited opinions on the revision of the "Guidelines for Industrial Structure Adjustment (2019 Edition)".
In accordance with the relevant work arrangements for rectifying virtual currency "mining" activities, the National Development and Reform Commission recommends that the virtual currency "mining" activity item be included in the current "Guidelines for Industrial Structure Adjustment (2019 Edition)" in the form of a supplement, and that the seventh item be added to the "(XVIII) Others" in the elimination category "I. Outdated production process equipment", which is virtual currency mining activities.
On October 19, China Taxation News published an article titled "Preventing Tax Risks Brought by Virtual Currency", stating that the risk of tax loss brought by virtual currency in my country deserves in-depth research and discussion, and suggested comprehensively clarifying industry tax-related data, establishing an overall tax supervision framework, and promoting the upgrading of tax collection and management technology.
The article points out that from a tax perspective, for domestic enterprises and residents participating in domestic and overseas transactions of virtual currencies, my country should strengthen inter-departmental collaboration and international multilateral regulatory cooperation, focus on preventing illegal cross-border outflows of funds and the use of virtual currencies to evade taxes at home and abroad, and include virtual currency accounts in the exchange of tax-related information on financial accounts.
According to a reporter from Times Finance, there are currently significant differences in the regulatory policies of mainstream countries in the world towards blockchain-based digital currencies such as Bitcoin. Policy attitudes can be divided into three categories: strict prohibition, restriction and permission. my country belongs to the first category.
"Because the emergence of virtual currency will have an impact on the current financial system, it will also bring about some illegal crimes such as fraud and fundraising. In order to prevent financial risks and prevent investors from being deceived, the country has implemented a strict ban on virtual currency." Noah Wang, co-founder of TOP Network, told Times Finance on October 21.
In contrast, developed countries with strong capital attraction, such as the United States and the United Kingdom, generally allow Bitcoin within the regulatory framework and show great interest in Bitcoin and blockchain technology. At the same time, some giant American companies have also laid out the virtual currency industry. From Visa to PayPal, from Budweiser to Coca-Cola, they are embracing encryption and launching related products, including NFT tokens.
From the perspective of market value, the current cryptocurrency market has developed into a trillion-dollar market and has great potential for development in the future.
"If the crypto industry hopes to grow at a larger scale, it must accept compliance." Noah Wang admitted that the recent Chinese regulatory storm has had a rapid impact on the local market's crypto ecosystem. Regulators around the world have warned some top centralized exchanges and closed fiat currency channels. "If the market grows to a larger scale, it will inevitably face regulation."
"All domestic-related businesses have now been stopped." The brand manager of an overseas cryptocurrency exchange told Times Finance on October 21 that they are currently reorganizing and reorganizing their personnel, and countries such as Turkey will be our next key markets.
When investors open many cryptocurrency websites, they will receive information prompts that the website technology may not support access by mainland members, or that the network is unstable and there is a risk of service interruption. 1634861579.pngCryptocurrency website tips (Source: Website screenshot) According to Times Finance, some Chinese employees of overseas exchanges have chosen to leave, and some have already started overseas purchasing business.
As of now, exchanges including Huobi, BiONE, CoinEX, AEX, and Matcha, mining pools including Spark Pool and Bee Pool, and digital wallets including TokenPocket have announced that they will stop or restrict services to customers in mainland China.
On the morning of October 22, Beijing time, affected by the National Development and Reform Commission's listing of "mining" as an eliminated industry, cryptocurrencies generally fell sharply. In one day, Bitcoin fell from $66,000 to $62,100, a drop of 5.79%. (Times Finance) |
