Since November 11, Shanghai, Beijing, Shenzhen, Dongguan, Inner Mongolia and other underground supervision documents have first issued risk warnings for digital currency trading related activities, and subsequent investigations and closures of trading platforms have been carried out. The mainstream media whispered and updated the progress and results of the remediation actions.
On November 22nd, the Shanghai headquarters of the central bank, which was scheduled to end the day, issued another order, saying that it would “increase supervision and control efforts”. Since then, the currency market has fallen by 10% for a short period of time, and the amount of open positions in the day has reached 3.6 billion yuan.
When barbarism has been growing for a long time, the regulatory boots in the blockchain industry are landing.
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For the first time since the "March 4"
On the afternoon of November 11, the Securities and Futures Commission of Hong Kong issued the "Warnings on Virtual Assets Futures Contracts" and "Standards: Regulating Virtual Asset Trading Platforms" . Regulatory standards are issued for STO exchanges within the jurisdiction, while digital currency futures services are suspended.
On the 13th, the Beijing Municipal Bureau of Local Financial Supervision issued the “Risk Prompt on the Unauthorized Operation of Branches of Trading Sites” , stating that “Beijing has not approved any trading venues to establish branches, and if there are foreign exchange transactions (focus on financial assets) The operation of the branch of the Exchange in Beijing is an illegal business operation."
"This notice is not specifically for virtual currency transactions. It is the continuation of the clean-up and rectification of various local financial exchanges, but the virtual currency is also within the scope." Zhu Youping, deputy director of the China Information Network Management Center, commented.
On the same day, the Dongguan Financial Work Bureau issued the “Risk Tips on Preventing Illegal Fund Raising in the Name of “Virtual Currency” and “Blockchain” , but did not indicate any further action.
The "heavy boxing" that really shocked the currency circle was that on the 14th, a document entitled "Notice on the Implementation of the Notice of Renovation of Virtual Currency Exchanges" was flowed out. The depositors were "People's Bank Shanghai Headquarters Mutual Gold Remediation Office and City Financial Stability Joint do".
According to the document, according to the relevant arrangements of the National Mutual Remediation Office, special rectification focuses on three activities: 1. Conducting currency transactions in China; 2. Sending money and raising funds in the name of “blockchain innovation”; ICO projects registered abroad, exchanges provided by the exchange, and services such as agency sales.
At the same time, the documents require that each department complete the mapping and submit the relevant company list and information by November 22nd. For the above-mentioned enterprises found in the investigation, dispose of them immediately, and “play early and fight small”.
This document was immediately confirmed by the authorities.
On November 22nd, the Shanghai headquarters of the central bank, which had completed the original plan, issued another order, saying that it would “enhance the supervision and prevention efforts” and instructed the ministries to continuously monitor the “drainage and agency for the ICO projects and exchanges registered outside the country”. Enterprises that buy and sell services."
From the perspective of remediation results, Shenzhen has announced data.
According to the Shenzhen Special Zone News, as of November 22 (the next day the Shenzhen City began to rectify), the Municipal Local Financial Supervisory Authority has passed through the Lingbi system to detect 39 illegal enterprises suspected of carrying out virtual currency. (Odaily Planet Daily Note: The Lingbi system is developed by Tencent's security anti-fraud laboratory, which can perform artificial intelligence analysis on government data, public information, report information, social media information, etc., and quickly capture results.)
"This joint supervision of many places is the strongest since the 'March 4'. The relevant management departments once again reiterated illegal activities such as pyramid schemes that prohibit all IXOs and fake blockchains, and related projects or exchanges were retired. It is an inevitable phenomenon," said a related person.
“The IEO, which was popular this year, is one of the tools that the exchange has promoted and promoted the value of the platform currency. However, the exchange lacks a reasonable identity to help the project directly finance, and the control and control of the project are also mixed. Therefore, The exchange will be hit by a new round of policy focus," one analyst said.
Trading platform is waiting for remediation
The trading platforms that have been growing arbitrarily, and the non-performing assets mentioned above, are being strictly investigated.
As early as the end of October, the virtual currency exchange BISS had a failure to raise coins, accompanied by rumors that all members disappeared. On November 22, according to the Beijing News, the Beijing police cracked the BISS illegal fund-raising fraud case and arrested 10 suspects. The first number of the first currency exchange was terminated and was classified as “illegal fund-raising fraud”. Case.
The Securities Times quoted industry insiders close to the regulators as saying, "The wave of catching the currency has just begun."
On November 21st, according to Blocklike, the technical team of Bithumb Global, based in South Korea, has entered the “long vacation” mode, and the official website also prohibits domestic IP access.
On the 23rd, Bitsoda.com announced that it will cease operations indefinitely; QBTC announced that all its operations will be relocated to Ukraine, and will gradually shut down services for users in mainland China and Hong Kong.
On the 24th, news of the IDAX exchange being defended and the core team running was also discussed in various communities. In addition, GGBTC, MGEX and Newton Exchange have not issued coins for half a month.
Many news are still unable to confirm the true and false, but it can be seen that the industry is in the pre-regulation situation and the high risk of the trading platform.
After the survival of the fittest, the industry will meet the dawn
Last week, CCTV News once again revealed a pyramid scheme that was borrowed from the name of “blockchain”, BeeBank, and emphasized that “blockchain is only a technical means and does not create value by itself”.
Under the supervision of the heavy hammer, the funds are invisible, and many investors applaud it.
Ding Jiayong, a market analyst, believes that after the "bad part" is banned, the industry's overall environment will be better and better, and more positive aspects will be generated, which will lead to an increase in the audience's goodwill and capital."
Analyst Xiao Zhang also agrees that the legislation related to digital currency is still in the blank in China. Many IXOs and exchanges cut the leek through "air currency" and "funds", which is not acceptable for social morality. Regulators should investigate and deal with it. Any market without norms and order is an immature market.
The fact is that regardless of the size of the exchange, it is far from the true "compliance". However, the gradual tightening of supervision has exposed high-risk assets and platforms that are trading high-risk assets.
What happens after the waterfall?
Although this joint action points to the trading platform, market sentiment still leads to further “de-bubbling” of the currency market.
On November 22nd, the announcement of the “continuous monitoring” of the central bank's Shanghai headquarters came out, and the market fell. Bitcoin fell below $7,000 in a short period of time, falling by 11% at 24 hours, and the cumulative 24-hour volume of exchanges on each exchange reached $500 million (about 3.6 billion yuan).
In view of the risk of currency fluctuations, the total number of BTC contract positions has dropped from US$1 billion to US$500 million from September 25 to the present; just from 21 to 24, BTC positions have been reduced by 20%.
For the market outlook, the media "Currency Nuggets" analysis, the current market is in a relatively embarrassing point – close to 7,000 US dollars, the hour line level has signs of stabilizing, but the daily level is still short, MACD decline Further expansion can only be said that short-term support has been obtained near the MA360 line near 7,000 US dollars, and the market is difficult to be optimistic.
The overall trend of the mainstream currency and the BTC are in sync, the decline is relatively large, and the rebound is still weak.
The more directly affected by the regulation is the platform currency. Among the three major platform currencies, HT and OKB fell by 1/3 on the 7th, and BNB fell by 26% on the 7th.
A senior trader said, "Under the policy environment, the platform currency will be under pressure for some time, and it will not be optimistic in the short to medium term."
On the other hand, the domestically-produced public currency that was sought after last month returned to the starting point after a wave of roller coaster prices, and even further retracted, and the transaction was not active.
With the official release of the top-level policy signal, many people have focused on the "next-generation disruptive innovation" blockchain. The supervision also indicates that the industry needs to be educated: the real application scenario of blockchain technology is not “currency speculation”, but “doing things”, empowering and serving the real economy, deepening the industry and improving efficiency.
We will also continue to focus on blockchain companies and scenarios related to industry.
文 | 黄雪姣 Edit | Hao Fangzhou