Are we experiencing 2017 in 2021?
Intro
In the first half of the year, institutions and companies, led by Tesla and Microstrategy, entered into the cryptocurrency industry during the start of the bull market with big moves. The price of the various cryptos broke records one after another. Following that, Musk started shilling Dogecoin, and newcomers were frantically involved in various MEMEs led by Dogecoin. The animal meme cryptocurrency market has caused social controversy, and the hopes of doubling assets in 2017 was almost reproduced in the first half of 2021.
Crazy investment and skyrocketing market prices often hide high risks. Indeed, after the craze, various countries continued to increase supervision and began to rectify Bitcoin. As a result, the bad news bounced back. Bitcoin once fell to $29,000, which caused many players in the crypto space to be hit hard.
What happened overseas?
The United Kingdom required cryptocurrency-related companies to register with the Financial Conduct Authority (FCA) before starting business in the United Kingdom starting in January. A senior Indian official revealed in March that it would introduce a bill to ban cryptocurrencies.
The Central Bank of Turkey prohibits the public from using cryptocurrency and crypto assets to purchase and trade on the grounds that it may cause “irreparable” losses and transaction risks.
South Korea will impose a 20% tax on the capital gains of cryptocurrencies as scheduled next year. The Central Bank of Mexico also recently announced that virtual currency is not its legal tender, and it is forbidden to use it in the country’s financial system.
What happened in China?
Since the introduction of Inner Mongolia’s clearing of virtual currency mining and the closure of exchanges and social media accounts, China’s rectification of the crypto industry was taken.
February 25
The Development and Reform Commission of the Inner Mongolia Autonomous Region proposed to “completely clean up and shut down virtual currency mining projects, and withdraw them before the end of April 2021.”
March 11
The official Weibo accounts of the three major domestic cryptocurrency exchanges Huobi, OKEx, and Binance were collectively blocked.
April 06
According to a paper published in Nature Communications by scholars from the Chinese Academy of Sciences and Tsinghua University, if there are no appropriate interventions and feasible policies, intensive Bitcoin mining may undermine China’s emission reduction efforts.
April 18
Li Bo, deputy governor of the Central Bank, stated at the Boao Forum for Asia that Bitcoin and stablecoins are encrypted assets, and encrypted assets are investment options, not currencies themselves.
May 18
The China Internet Finance Association, the China Banking Association, and the China Payment and Clearing Association jointly issued an announcement to prevent the risk of virtual currency speculation.
June 09
The Qinghai Provincial Department of Industry and Information Technology issued the “Notice on the Comprehensive Shutdown of Virtual Currency Mining Projects”.
June 11
Relevant departments in Yunnan issued a notice requesting that the Bitcoin mining enterprises’ electricity consumption consolidation and rectification work be completed as soon as possible by the end of June.
June 18
Relevant departments in Sichuan Province recently issued a notice requiring power generation companies to conduct self-examination and correction and immediately stop supplying power to virtual currency “mining” projects. Implement national clean-up requirements without compromise.
June 21
The central bank interviewed some banks and payment institutions such as Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank, Industrial Bank, and Alipay. They demanded that they fulfill their obligations of customer identification and must not provide account opening, registration, transaction, settlement, etc. for related activities.
Final thoughts
One day in the crypto space is like one year in the world, the ups and downs of the past six months, this roller coaster-like market, with some people leaving the scene sadly, while some people have not awakened from their dreams.
When these policies were promulgated one after another, it reminded us of the 94 incidents of that year. Compared with this year, the policies at that time had similarities in the same way.
On September 4, 2017, seven departments, including the Central Bank, the Office of Cyberspace Affairs, the Ministry of Industry and Information Technology, the State Administration for Industry and Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission, officially stopped ICO financing. It is pointed out that no organization or individual may illegally engage in token issuance financing activities, and all types of token issuance financing activities should be stopped immediately.
As soon as the announcement was issued at 3 pm, several tokens fell one after another, with the highest drop even exceeding 90%. After 1994, the exchanges also moved overseas.
If you think about it carefully, there are traces of China’s policies:
2013: Does not recognize the legal status of Bitcoin, but allows free transactions
2017: China vigorously cleans up exchanges
2018: No-ICO blockchain, don’t need ICOs
2021: Stop mining businesses, financial institutions are not allowed to carry out virtual currency-related business.
The currency circle has experienced these ups and downs. Everyone will continue to believe it or leave the industry, but we must stabilize our original intentions and don’t just be gambling with studs. Rational investment is the best policy.
About Valarhash
Chengdu-based Valarhash integrates mining machine sales, miner hosting, mining pool, and mine construction services. Led by CEO Fiona Lv, Valarhash aims to provide users with transparent and beneficial mining plans using advanced technology, with lower barriers of entry. Business operations cover hardware research and development, digital asset transactions and 1TMine hash power contract sharing. With a leading position in the hash power market, Valarhash integrates frontier resources with global vision, providing crypto compute service (CCS) and linking physical and digital worlds with blockchain technology.
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