China Offensive: Week Seven
The summer of turmoil has continued this week, and it has been seven weeks since the first announcement on May 18 that virtual currencies are a risky investment and that financial institutions should not provide services to them. This action appears to have the desired effect as public interest in this asset class has declined. This is evidenced by the 90-day decline in WeChat searches for the word “bitcoin” over the weekend, although this trend is also reflected in global searches on Google.

This week, the attacker was the Central Bank, which posted on its website on July 6 that it and other related institutions are not allowed to directly or indirectly provide virtual currency-related services to customers. The announcement also states that organizations cannot provide services such as commercial premises, trade displays, marketing campaigns, and payment restructuring for commercial transactions involving virtual currencies. As usual, comments on Weibo have been strong for regulation as China’s social media continues to engage heavily with traditional investors.

Jack Ma Foundation, Monkey Inn
On July 1, gaming giant NFT Animoca Brands announced that it had received a $50 million investment from Blue Pool Capital. Blue Pool Capital was created by tech entrepreneur Jack Ma in 2015 and manages a portion of his $52.1 billion net worth. Blue Pool Capital also manages a portion of the assets of Joe Tsai, who is currently the Executive Vice President of Alibaba. Animoca Brands develops and publishes NFT games such as REVV Motorsport and The Sandbox.

miners in money
BTC mining hash rate continues to drop to around 50% as Chinese miners sit on the sidelines or appear to be on the move. This modified the difficulty of the Bitcoin consensus algorithm, making it 28% easier to recover blocks. As a result, the remaining miners were 50% more profitable, according to a report by Cointelegraph.

Several people, including Galaxy Digital CEO Mike Novogratz, have spoken about the positive impact of the current initiative. Nick Spanos of Zap Finance stated that Bitcoin was an unstoppable machine due to the fact that “the second largest economy in the world cannot crush, devalue and manipulate Bitcoin.” This conclusion by Spanos ignores the fact that China has very little social value from Bitcoin crushing or devaluation. Current policies focus more on eliminating energy inefficiency and risky speculative business behaviour.

cross the line
On July 6, the Beijing Municipal Civil Affairs Bureau banned the Chinese Blockchain Application Research Center. No specific reasons were given for the ban, although the official response stated that the think tank was conducting illegal social activities, that the center was likely dealing with cryptocurrencies, and given the name of the official, it was believed that he was acting illegally. It is very common for organizations to adopt formal sounding names in an effort to improve their position in the industry.

The Chinese Blockchain Application Research Center was established in Beijing in November 2015 by the Internet Finance Museum and several other institutions working in the blockchain industry. He claimed to have established regional centers in Hangzhou, Shanghai, Silicon Valley and Dubai. In hindsight, their contributions to the industry seem minimal, making this suit more festive than anything else.

Source: CoinTelegraph

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