China keeps fighting against cryptocurrencies, miners are almost expelled from the country, and Central Bank has promised to further tighten the operating conditions of financial companies to prevent cryptocurrency trading. But although China is one of the key markets for Bitcoin and especially the stablecoin Tether, in fact, the cryptocurrency market was able to survive these problems.
TO date, the key country for cryptocurrencies is United States. The authorities there are relatively good about Bitcoin. There are questions for the rest of the crypto projects, especially the ICO and DeFi, but what is being prepared in America no longer looks like the transformation of cryptocurrencies into a kind of stock market.
For a long time, China was the center of mining, until one communist party wanted to cut its own advantages, because of which their own electricity producers were left without a consumer and began to put up entire hydroelectric power plants for sale.
They had been planning to ban mining earlier. But misunderstanding of cryptocurrencies coincided with the arrival of other countries for low standards of care for nature this year, because China burns coal the most in the world. So they found the extreme ones, exponentially turning off all the miners, most of which consumed electricity from hydroelectric power plants, but who knew there.
Also, China is an important center for trading cryptocurrencies and the country is the leader in the use of the stablecoin Tether. Despite the fact that trading in cryptocurrencies in China has been banned since 2017, it still flourished thanks to P2P platforms and simply by working on foreign exchanges. Moreover, these exchanges are conventionally foreign, Binance is also a Chinese company, but it does not have any official representative offices and does not seem to conduct business.
An interesting fact, despite the current situation around the exchange, as it is being pressed by regulators around the world, Chinese traders give Binance the biggest confidence ball. Why, if everything is bad at Binance, the BNB rate does not fall? Because everyone believes that these are temporary difficulties and nothing terrible will actually happen.
What is happening in Russia? There is a law on digital assets.
What’s really cool is that Russia and neighboring countries are very active in the cryptocurrency space if you look at the activity of trading. And, of course, the authorities could not miss such an opportunity so as not to try to collect taxes for it. Therefore, a law was adopted, where there is such a concept as “digital assets”, they are recognized as property and, as a result, are subject to taxation. According to this law, which is already in force, a Russian can declare a cryptocurrency, as well as report the income received from it and share it with the state. That’s all, the state can still confiscate cryptocurrency by court, if you have previously declared it and there is a necessary reason, for example, debts.
This situation cannot be called normal, and therefore the law that is in force now, by the way, also prohibits the use of bitcoin as a means of payment, does not suit us at all.
China’s actions have already affected the crypto market, it does not pay much attention to Russia and now United States remains the main protagonist, where the authorities have become extremely suspiciously active.
US regulators have become more active. According to the latest statements by the new head of SEC, Gary Gensler, they are going to regulate everything without exception. First of all, it is worth straining for stablecoin issuers.
Here, US authorities, oddly enough, are in solidarity with China and believe that there should be no uncontrolled printing of money. We assume that they will start with them, there will be checks for the availability of security, compulsory licensing, and other delights.
The two largest stablecoins in terms of market capitalization formally work in USA, these are USDT and USDC, and it is logical that they will start with them. The former always knew how to get out of any situation, the latter were initially launched with an eye to friendship with the authorities.
So if your funds in these two coins do not indulge in hopes, at any moment they can be banally blocked like in a bank.
Already now, it is worth thinking about making sure your stablecoins have a clean history, because if you dig out a connection with illegal operations, it is you who can become extreme, and at best, you will simply lose money. It is also worth remembering about Facebook’s plans to launch its own stablecoin pegged to the dollar, it seems to us that we will not see it until the SEC establishes clear rules of the game.
Now let’s consider positive news. SEC is too busy with the stock market, some traders on Reddit have thrown them many problems. Therefore, regulator has no time for cryptocurrencies. The issue is postponed for the reason that SEC wants to create a normal system of interaction between cryptocurrencies and the authorities, and not just take and prohibit, as some do. This also leaves a good chance for Bitcoin ETF adoption, albeit not quickly, but in the long run it will still be. Gary Gensler himself has personally stated that he supports innovation, and for Bitcoin to reach its full potential, it must be inscribed in government policy.
“I'm pro innovation but we also need rules of the road," says @GaryGensler. "Satoshi Nakamoto's invention if it is going to meet its potential it needs to come within public policy frameworks."pic.twitter.com/M0djTNlHFw
— Documenting Bitcoin 📄 (@DocumentingBTC) August 4, 2021
The next good news is that several American senators have already taken Bitcoin side, they announced that they are investing themselves and lobbying the interests of cryptocurrency supporters.
If you’ve heard, the latest $ 1 trillion infrastructure plan contains taxes on cryptocurrencies and wants to raise $ 25 billion. But Senator Pat Toomey has already prepared edits to clarify this document and remove miners and full node owners from brokers. The interests of cryptocurrencies in the United States are protected at the highest level and this is good news.
Based on the above, we can conclude that USA will become the center of regulation of cryptocurrencies, and most other countries will follow this example. We will not receive complete freedom and recognition, as they are trying to do in El Salvador. But it is obvious that cryptocurrencies will try to bring them to the standards of the stock market.
New rules are always bad and contrary to Bitcoin idea. But on the other hand, there is a chance that Bitcoin is officially recognized as an asset, banks and stock exchanges will receive clear rules for working with it, and there it is not far from the point that states will be able to start accumulating bitcoin. You say, these are dreams, perhaps, but we believe in such a development of events and periodically ask ourselves how much Bitcoin can cost if there are only 21 million of them, and there are so many countries and people on the planet.