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Over the past week, the entire cryptocurrency market has suffered a heavy blow, with the price of Bitcoin, the largest cryptocurrency by market value, falling below $41,000. The over-the-counter price of USDT once dropped to 6.18 yuan, the real-time exchange rate of RMB against the US dollar was 6.466 yuan, and the negative premium rate of USDT reached -4.42%.
(BTC price trend in the past seven days)
In addition, other major cryptocurrencies are also in the red.
In fact, since last week, the crypto market has entered a stage of volatile decline. In the past two weeks, news from the market level has caused the continued spread of concerns. First, investors are worried that the Evergrande incident may affect the global economy, which has triggered the sell-off of crypto assets and produced a chain effect. Secondly, on Friday, the National Development and Reform Commission and the central bank issued a series of notices to regulate mining and virtual currency trading speculation. After the news was issued, the market speculation heat subsided and the overall crypto market went down.
In this regard, Sun Yang, a researcher at Suning Financial Research Institute, said in an interview: "Subsequent regulatory authorities will certainly issue many detailed rules and specific actions, and will initiate in-depth and long-term rectification of virtual currency business activities in financial institutions and related industries." Sun Yang said that virtual currency-related business activities are now varied and highly hidden. For example, through the form of digital art auctions, it is necessary to strengthen the research and identification of various hidden variants involving virtual currency. He believes that the rectification of virtual currency should be included in the long-term assessment of local financial supervision, financial institutions, relevant localities, energy management departments, and power companies.
As supervision deepens, many platforms have announced liquidation measures. On September 25, the exchange BHEX issued an "Announcement on the Permanent Closure of Platform Services and Publicity of Liquidation Process". According to the announcement, in response to regulatory requirements around the world and in compliance with the operational requirements of local cryptocurrency laws and regulations, BHEX will gradually close platform services from now on, and only provide withdrawal services after October 9, and will be permanently closed on October 16, 2021. After the platform is closed, users will not be able to use all trading functions on the website and APP.
Official news from the CVN Foundation pointed out that it has decided to terminate all technical support services and labor cooperation relationships with Chinese companies, institutions and individuals. In the future, the CVNT project will no longer have an operating team in China, and the CVN main network will no longer accept IP nodes in China.
In addition, on September 26, Huobi Global issued the "Announcement on the Gradual and Orderly Clearance of Existing Users in Mainland China", which showed that in response to the local government's regulatory policy requirements, Huobi Global has stopped new user registration in Mainland China on September 24, 2021 (UTC+8). For existing users whose identities are authenticated as being in Mainland China, it is planned to complete the orderly withdrawal before 24:00 on December 31, 2021 (UTC+8), while ensuring the safety of user assets. The specific withdrawal details will be notified to users through announcements, emails, in-site letters and text messages.
However, judging from foreign media reports, crypto experts are more worried about U.S. regulation than Chinese regulation. Recently, U.S. regulators have stepped up their attention on the crypto industry. In an interview, Meltem Demirors, chief strategy officer of CoinShares, pointed out that the greater risk is that U.S. regulators will follow China’s lead.
SEC Chairman Gary Gensler has been calling for regulation of the crypto market, and the SEC has been working overtime to develop a set of rules to do just that. Others, including Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Janet Yellen, have also expressed concerns about the space.
John Wu, president of Ava Labs, noted that cryptocurrency startups will flock to crypto-friendly states and countries. Taking reasonable, thoughtful steps is a huge opportunity for the United States to become a safe haven for the future of cryptocurrency and solidify itself as a global economic center in the coming decades.
However, others believe that well-thought-out regulation will benefit the crypto industry in the United States. Anjali Jariwala, a certified financial planner, certified public accountant, and founder of Fit Advisors, previously said, "I don't see how an industry as big as crypto can continue to operate without any regulation or oversight. If people want crypto to become more of a mainstream asset, then I think this is a necessary first step."
It is worth mentioning that Larry Summers, former US Treasury Secretary and Chief Economist of the World Bank, talked about cryptocurrency regulation in an interview with Bloomberg. He said that strict regulation will benefit cryptocurrencies. Cryptocurrencies will be better regulated in a sound way, rather than being seen as a paradise for libertarians. (Virtual currency)
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