Best Cryptocurrency Exchange Reddit

China ‘Banned’ Crypto. Can The SEC Try Doing The Same?

China ‘Banned’ Crypto. Can The SEC Try Doing The Same?
Written by publisher team

China banned encryption last month. What happened? Bitcoin prices soared. Take this, Xi Jinping.

Bitcoin and other cryptocurrencies have gone up almost every day this month and are back again on Monday, so, as the old trading stingray tuna used to say back in the ’70s…sorry, Charlie.

As most cryptocurrency investors know, the People’s Bank of China and the National Development and Reform Commission have banned cryptocurrency mining and declared all cryptocurrency transactions to be illegal.

The question I’ve asked a lot, as an investor in Bitcoin and many altcoins is – how long before the Fed kills this market? Is it a serious possibility?

At first, I wondered about central banks swallowing bitcoins and taking them out of circulation. But the people I spoke to in the market, including the exporters, told me not to worry (too much… until now). I wrote about it here.

Now to the Securities and Exchange Commission. China organized bitcoin into smithereens and hit the kill switch when it began rolling out the digital renminbi (RMB). There is no date yet for a full rollout, but the wheels are in operation and have already been beta tested in some small towns. Bitcoin, and others, compete for a centralized RMB on a government-controlled blockchain.

The US has also talked about the digital dollar, although we are late on that. So this leaves cryptocurrency largely in the hands of the SEC, and the SEC was more favorable to cryptocurrency than unfriendly.

An example of the SEC’s battle with cryptocurrency is, of course, Ripple (XRP). Last month, XRP said “no deal” to settle its dispute with the Securities and Exchange Commission. That’s because they believe Securities and Exchange Commission Chairman Gary Gensler will drop the case altogether.

On the other hand, Gensler Securities and Exchange Commission does not open its doors for cryptocurrency to become the new financial market of the United States

Coinbase was unable to pass the Securities and Exchange Commission on its plans to expand and create a crypto lending arm, known as Lend. They have abandoned her.

“We have been told by the SEC that they want to sue us about Lend. We don’t know why,” Coinbase said on September 7. “The SEC told us it considers lending to be collateral, but it did not say why or how they came to that conclusion.”

The Securities and Exchange Commission is right. Lending can be packaged in a security. Wall Street sells loans all the time. Owned by people in 401ks.

“Lending has become one of the main services in the DeFi sector, and is gaining in popularity this year,” says Evgeniy Butyaev, CEO of the SWT Project in Russia. They are creating a cryptocurrency bank. SWT stands for Smart Wallet Token. “To get a loan, you need to leave collateral – usually in one of the main cryptocurrencies. Most often, the borrower also receives crypto money. There are several reasons why a cryptocurrency loan is attractive. Traders are often reluctant to close their positions, and they can borrow to access the coins. “Another way is to invest in a crypto loan to generate passive income,” Potyaev said. “The (bank) authorities are not entirely happy with financial transactions outside their control.”

Things are moving fast in cryptography.

Coinbase went public this year. Grayscale releases $44 billion in new crypto funds. They created a DeFi exchange-traded fund this summer.

Cryptocurrency Wall Street is being built every day, just outside the confines of the usual brand name companies in the field of asset management. These things are not paid for by BlackRock and Vanguard.

The SEC could launch an attack on these companies similar to what is happening in China.

“Unfortunately, we will see a deeper crackdown,” says Daniel Santos, CEO of DeFi.Finance, a project of Woonkly Labs. is located in the field of hybrid finance, also known as “HyFi,” which is often described as a bridge between old-school DeFi cryptocurrency, and central financial institutions. “Defective products that are not regulated will face difficulties. Governments (crypto lenders) will not allow platforms that do not require knowledge of your customer and follow anti-money laundering laws,” says Santos. Woonkly Labs operates on DeFI and NFT platforms that align with European regulators. It is headquartered in Estonia, which has positioned itself to be a hub for crypto startups in the Eurozone. “Only time will tell what happens next.”

Everyone knows there is an organizational campaign coming. But is it bad?

Gensler often compared the role of the SEC in cryptography to that of a mathematical judgment or traffic cop. It didn’t scare the market too much. He says the onus is on crypto investors and fund managers to ensure they comply with “anti-money laundering laws, tax compliance, and (know that regulators) have a responsibility to the American public.”

During an interview with former Federal Prosecutor Preet Bharara at Vox Media’s Code Conference in Beverly Hills on September 27, the SEC chief said that the growth of the cryptocurrency market makes regulatory action more important today than it was a year ago. “This is not going to end well if he stays outside the regulatory realm,” Gensler said. “Thinking that an area that has grown tenfold in the last 18 months — not just in terms of asset value, but in core lending and so much more — that it will stay out of these policy frameworks and work… We’re going to have a problem and a lot of people will be hurt” .

Yes, we don’t want Bernie Madoff-Esk to wipe out crypto investors. Given how fast and powerful cryptocurrency is, I can assure you that many people under the age of 40 now have more money in Bitcoin than they have in their 401k, and probably consider it a big part of their retirement. I know I’m inclined in that direction.

Most people in the market are not worried about regulation. They’ve been asking for it for years. The argument is – Wall Street-style regulation on crypto means crypto is a real investment asset and more investors will buy, driving up asset values.

“Regulators are and will definitely move in the crypto space, as we have seen recently with Binance in different areas. This is not necessarily a bad thing,” believes Moe Carrim, co-founder and CFO of Curate, an NFT platform.

“The campaign can help mitigate a lot of flaws in the industry, particularly as we’ve seen with the DeFi boom and the massive amount of fraud. You’ll need to create new monitoring tools that work in a decentralized ecosystem, which is much better for many reasons like 24/7 service “Cryptocurrency is willing to adopt regulations if it is put in place by a knowledgeable government that understands the technicalities and economics of cryptocurrency,” Karim says. “Like the internet in the early 2000s, digital currencies will face these pains.” growing (organizational). With the right tools, encryption will become more transparent, more identifiable, more accountable and more accurate than most centralized financing systems.”

China tends to scare off the cryptocurrency world, giving traders a reason to sell. But, am I wrong here… The world of cryptocurrency has, perhaps, become unquestioned.

Every time Beijing cracks down on Bitcoin, a constant joke is that China has already banned the cryptocurrency 18 times.

Chinese government agencies have issued a series of increasingly restrictive but not final legal bans on various aspects of cryptocurrency since 2013, but as Wired UK noted, China’s crypto industry is booming.

“Big things are happening in China right now and for the umpteenth time China is cracking down on crypto trading and the market is in flux. Waseem Mamlouk, Vice President of Capital Markets at Nimbus, said the recent crackdown on Chinese regulators was an opportunity to buy in. And this move certainly appears to follow the same pattern as Bitcoin touched $40,000 over the weekend and quickly recovered to over $44,000.” When we first discussed this issue about two weeks ago now. On Monday, October 11, Bitcoin was trading at over $57,000.

Yes, take that china!

China’s escalation of crackdown on Bitcoin and other cryptocurrencies was always going to happen. The borderless and unregulated nature of cryptocurrency runs counter to the Chinese government’s vision of a state-dominated economy. Wired reports that Beijing sees cryptocurrency as an example of mindless guesswork, and I might add – Beijing sees it as Macau-style gambling and nothing more.

So organize and block whatever you want. So far, it hasn’t put any serious impact into cryptography. And with Wall Street fully supporting this with a fleet of new products and new companies being born through it, this is not going to happen anywhere. The battle of centralization and decentralization will be a battle worth pursuing for many years to come.

Mamlouk thinks it’s getting hotter as technology advances and your cipher is extracted by stateless algorithms. (Maybe even stellar level algorithms, from a satellite in space.)

“The real battle will start when a truly autonomous system is built and can operate its own platforms with minimal human assistance,” Mamlouk says, meaning that it will be difficult for the state to target them individually.

“Artificial intelligence will play a huge role, and for cryptocurrencies, it is a huge game changer,” Mamlouk says. “Any system that can localize its servers in the right place and has the ability to move them quickly is essentially bulletproof from an organizational standpoint. What will remain is how these systems stand the test of time from a technical (rather than a regulatory) perspective.”


About the author

publisher team