Multiple regulatory documents issued, the virtual currency industry will go to the bubble
Produced | Odaily (ID: o-daily)
Produced | Odaily (ID: o-daily)
Since November 11, Shanghai, Beijing, Shenzhen, Dongguan, and Inner Mongolia have issued regulatory documents. First, they issued risk warnings on activities related to digital currency transactions, and then successively conducted investigations on trading platforms and shut them down for rectification. The mainstream media has made high-frequency voices, updating the progress and results of the rectification actions.
On November 22, the Shanghai headquarters of the central bank, which was originally scheduled to end the survey on the same day, issued another order, saying that it would "intensify supervision and prevention efforts." Since then, the currency market has fallen by 10% in a short period of time, and the amount of liquidation in the day is as high as 3.6 billion yuan.
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The first multi-regional joint attack after the "94"
On the afternoon of November 11, the Hong Kong Securities and Futures Commission issued the "Warning on Virtual Asset Futures Contracts" and "Position Statement: Supervision of Virtual Asset Trading Platforms". Release regulatory standards for STO exchanges within the jurisdiction, and stop digital currency futures services at the same time.
On the 13th, the Beijing Local Financial Supervision Bureau issued the "Risk Reminder on Unapproved Business Activities of Branches of Trading Places", stating that "Beijing has not approved any trading place to set up branches. Exchange) branches operating in Beijing are illegal business operations.”
"This notice is not specifically aimed at virtual currency transactions. It is a continuation of the original clean-up and rectification of various local financial exchanges, but virtual currencies are also within the scope." Zhu Youping, deputy director of the China Economic Net Management Center of the State Information Center, commented.
On the same day, the Dongguan Financial Work Bureau issued the "Risk Reminder on Preventing Illegal Fundraising in the Name of "Virtual Currency" and "Blockchain", but did not indicate that there would be further actions.
The "heavy punch" that really shocked the currency circle was that on the 14th, a document titled "Notice on Launching Virtual Currency Exchange Investigation and Rectification" came out, and the payer was "People's Bank of China Shanghai Headquarters Mutual Fund Rectification Office and Municipal Financial Stability Joint manage".
According to the document, according to the relevant deployment of the National Mutual Fund Rectification Office, the special rectification will focus on three types of activities: 1. Carrying out digital currency transactions within the territory; 2. Issuing coins and raising funds in the name of "blockchain innovation"; 3. ICO projects and exchanges registered overseas provide services such as drainage, agency trading, etc.
The document also requires that all ministries must complete the survey and submit the list and information of relevant enterprises before November 22. The above-mentioned enterprises found in the investigation shall be dealt with immediately, and "strike early and small".
The document was later officially confirmed.
On November 22, the Shanghai headquarters of the central bank, which originally planned to end the survey, issued another order, saying that it will "increase supervision and prevention efforts" and instruct all ministries to continue to monitor "providing drainage and agency services for ICO projects and exchanges registered overseas." Businesses that buy and sell services, etc.
Judging from the results of the rectification, Shenzhen has released data.
According to the Shenzhen Special Zone News, as of noon on November 22 (the day after Shenzhen City began to rectify), the Municipal Local Financial Supervision Bureau has identified 39 companies suspected of illegal activities of virtual currency through the Lingkun system. (Odaily Note: The Lingkun system is developed by Tencent's security anti-fraud laboratory, which can conduct artificial intelligence analysis on government affairs data, public information, reporting information, social media information, etc., and quickly capture the results.)
"This multi-regional joint supervision is the strongest since the '94'. The relevant management department once again reiterated that all illegal activities such as IXO and pyramid schemes under the guise of blockchain are prohibited in the country, and related projects or exchanges have been cleared. It is an inevitable phenomenon,” said a related person.
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The trading platform is under rectification
The trading platforms that have been growing wantonly, and the non-performing assets mentioned above, are being strictly checked.
As early as the end of October, the virtual currency exchange BISS failed to withdraw coins, accompanied by rumors that all staff disappeared. On November 22, according to the Beijing News, the Beijing police cracked the BISS illegal fund-raising fraud case in one fell swoop and arrested dozens of suspects. case.
The Securities Times quoted industry insiders close to the regulatory authorities as saying, “The wave of arrests in the currency circle has just begun.”
On November 21, according to Blocklike, the Shanghai-based technical team of the South Korean encryption exchange Bithumb Global has entered a "long vacation" mode, and the official website also prohibits domestic IP access.
On the 23rd, Bitsoda.com announced that it would suspend operations indefinitely; QBTC announced that all business will be relocated to Ukraine, and that services for users in mainland China and Hong Kong will be gradually shut down in the near future.
On the 24th, the news that the IDAX exchange was defended and the core team ran away was also discussed in various communities. In addition, GGBTC, MGEX and Newton Exchange have not been able to withdraw coins for half a month.
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After the survival of the fittest, the industry will welcome the dawn
Last week, CCTV News once again exposed a pyramid scheme under the name of "blockchain", BeeBank, and emphasized that "blockchain is only a technical means, and does not create value by itself."
Under the heavy hammer of supervision, there is nothing to hide from the capital market, and many investors applaud it.
Ding Jiayong, a market analyst, believes that "after the evil parts are banned, the general environment of the industry will be better and better, and there will be more and more positive aspects, which will drive the audience's favor and increase the amount of funds."
Analyst Xiao Zhang also agrees: digital currency-related legislation is still blank in China, and many IXOs and exchanges use "air coins" and "funds" to cut leeks, which is intolerable by social morality, and regulators should investigate and deal with it. Any market without norms and order is an immature market.
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What happens after the waterfall?
Although this joint action is aimed at the trading platform, market sentiment still leads to further "de-bubble" in the currency market.
On November 22, as soon as the Shanghai headquarters of the central bank issued a "continuous monitoring" order, the market fell in response. Bitcoin fell below $7,000 for a short period of time, with a drop of 11% at 24:00, and the cumulative liquidation amount of various exchanges in 24 hours reached $500 million (about 3.6 billion yuan).
In view of the risk of fluctuations in the currency market, from September 25 to the present, the total amount of BTC contract positions has dropped from 1 billion US dollars to 500 million US dollars; from the 21st to the 24th alone, the BTC position has shrunk by 20%.
Regarding the market outlook, the self-media "coin circle gold digger" analyzed that the current market is at an embarrassing point - close to 7,000 US dollars, and the hourly level shows signs of stabilization and stability, but the daily level is still short. Further expansion, it can only be said that it has obtained short-term support near the MA360 year line near 7,000 US dollars, and the market market is hardly optimistic.
The overall trend of mainstream currencies is in sync with BTC, with a relatively large decline, and the rebound is still weak.
The platform currency is more directly affected by regulation. Among the three major platform coins, HT and OKB fell by 1/3 on the 7th, and BNB also fell by 26% on the 7th.
"Compared to the bright moment of the IEO concept at the beginning of the year, the platform currency has faded at this time, facing many difficulties such as continuous selling pressure from currency holders, market consolidation, and shrinking transaction volume. It is difficult to have a market in the short to medium term. "The gold digger in the currency circle" asserted.
Another senior trader also said, "Under the general policy environment, the platform currency will be under pressure for a period of time, and it is not optimistic in the short and medium term."
On the other hand, domestic public chain coins, which were sought after last month, returned to the starting point after a wave of roller coaster market, and even retreated further, and the transactions were mostly inactive.
With the official release of the top-level heavy policy signal, many people have paid attention to the "next-generation disruptive innovation technology" blockchain. And this supervision also shows that the industry needs to be educated: the real application scenario of blockchain technology is not "issuing currency for speculation", but doing "practical things", empowering and serving the real economy, deepening the industry, and improving efficiency.
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