Once again, the sharp edge of supervision fell from the sky, and the central bank's control of encrypted asset transactions came so unexpectedly.
On June 21, the official website of the People’s Bank of China issued a document stating that it has interviewed the Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank, Postal Savings Bank of China, Industrial Bank of China and Alipay (China) on the issue of banks and payment institutions providing services for virtual currency transaction speculation. Some banks and payment institutions such as Technology Co., Ltd.
The relevant departments of the People's Bank of China pointed out that the hype activities of virtual currency transactions disrupt the normal economic and financial order, and breed the risk of illegal and criminal activities such as illegal cross-border transfer of assets and money laundering. The central bank clearly pointed out that it is necessary to "improve the abnormal transaction monitoring model and effectively improve the monitoring and identification capabilities" and "resolutely cut off the fund payment link for virtual currency trading hype activities."
image description
Rhythm News has been supervised for "swiping the screen"
first level title
The central media voiced criticism, and the mainstream media frequently published articles
On May 21, the Financial Stability and Development Committee of the State Council (hereinafter referred to as the Financial Committee) held its 51st meeting to study and deploy key tasks in the financial field in the next stage. The official document stated that it will crack down on Bitcoin mining and trading behaviors, and resolutely prevent individual risks from being passed on to the social field. This is the first time that the State Council has explicitly cracked down on virtual currency mining.
Previously, the voice of "supervision is coming" was raging, and as soon as the news came out, the supervision finally came to the ground. Subsequently, the mainstream media continued to speak out. Since last month, Xinhua News Agency has published 6 articles in a row within 10 days, focusing on the "currency circle", from mining to trading to financing, involving mining, trading, "currency issuance", carbon emissions and many other fields have attracted widespread attention.
At the end of May, the Securities Times published an article titled "Bitcoin Mining Contradicts the Goal of "Carbon Peak"", criticizing the carbon emissions and energy issues generated by the "mining" process. This is not the only mainstream media to report on this matter, and other media also have reports of various types of topics. The energy issue of Bitcoin has long been concerned in the industry.
first level title
The mining industry has been hit hard, and Bitcoin has completed "de-Chineseization"
Accompanied by public opinion, there are also regulatory policies for mining farms.
In terms of supervision, the State Council of China and many local governments have made it clear that they want to crack down on Bitcoin mining, and some areas have already begun to clear Bitcoin mines. As a result, the "de-Sinicization" of Bitcoin's computing power has further accelerated.
On May 18, the Inner Mongolia Autonomous Region Development and Reform Commission issued the "Announcement on Establishing a Reporting Platform for Virtual Currency "Mining" Enterprises", and Inner Mongolia fired the first shot. On the evening of the 25th, the "Inner Mongolia Autonomous Region Development and Reform Commission's Eight Measures on Resolutely Combating and Punishing Virtual Currency "Mining" Behaviors (Draft for Comment)" was issued, requiring a comprehensive clean-up and shutdown of virtual currency "mining" projects.
After the large-scale liquidation in Inner Mongolia, Xinjiang, Qinghai, and Yunnan successively launched regulatory measures, and miners from all over the country began to "migrate." Until June 18, the "Notice of Sichuan Provincial Development and Reform Commission and Sichuan Provincial Energy Bureau on Cleaning up and Closing Virtual Currency "Mining" Projects" completely cut off the hope of Chinese miners, and the last boot to crack down on mining also landed up.
Since then, Chinese bitcoin miners have faced the most severe challenge in history. Apart from seeking to go to sea and relocate the mine, it seems that there is no other way to maintain the operation of the mine, and the miners have started the era of great wandering.
first level title
Regulatory implementation, continuous crackdown on transactions
The implementation of this supervision has been expected by many people in the currency circle.
Some people think that this central bank supervision may be the implementation of the 51st meeting of the Financial Committee, and it is not an unexpected black swan. Previously, after the Financial Committee meeting, financial institutions did not issue specific implementation methods.
In early June, following the crackdown on mining, search engines such as Baidu and Sogou, and social media such as Zhihu Weibo successively blocked keywords of virtual currency trading platforms. On Weibo, a large number of self-media Vs in fields such as bitcoin and cryptocurrency have been banned one after another. Clicking on their homepage shows, "This account has been complained of violating laws and regulations and the relevant provisions of the "Weibo Community Convention". Unable to view."
On June 9, the China Payment and Clearing Association under the central bank issued a risk warning to the entire industry, "Be wary of using virtual currency and blockchain technology to evade fund traceability." .”
On June 10, there were media reports that under the unified command of the Inter-Ministerial Joint Conference Office of the State Council's Combating and Governance of New-type Illegal Crimes in Telecommunications Networks, public security agencies in 23 provinces, autonomous regions, and municipalities simultaneously shut down the network. Carry out centralized arrests of illegal and criminal gangs that use virtual currencies to provide transfer and money laundering services for telecommunications and network fraud. A total of more than 170 illegal and criminal gangs were destroyed, and more than 1,100 criminal suspects were arrested.
Under a series of regulatory policies involving multiple fields, it is not unexpected for financial institutions to supervise the channels of funds.
This is not the first time that relevant departments have made regulations on virtual currency. In the development history of cryptocurrency for more than ten years, regulation has occurred from time to time.
As early as 2017, seven ministries and commissions issued a document stating that it is necessary to accurately understand the essential attributes of token issuance financing activities. Token issuance financing is essentially an unapproved illegal public financing behavior, which is suspected of illegal sale of token coupons, illegal issuance of securities, illegal fundraising, financial fraud, pyramid schemes and other illegal and criminal activities.
In August 2018, five ministries and commissions jointly issued the "Risk Reminder on Preventing Illegal Fundraising in the Name of "Virtual Currency" and "Blockchain". The document stated that the general public is requested to view the blockchain rationally, not blindly believe in hype promises, establish correct currency concepts and investment concepts, and effectively improve risk awareness.
For Bitcoin, mining belongs to the primary market, and trading belongs to the secondary market. This round of regulation covers the primary and secondary markets at the same time, which has exceeded the scope of previous regulation. Compared with the "Nine Fourth Movement" four years ago, the "621" in 2021 seems to be more severe. The darkest moment of cryptocurrency is coming again.
