Here are the top cryptocurrency industry news for this month
Table of Contents
Hydropower Plants Requested to Dismantle Power Supply to Bitcoin Miners in China
The Yingjiang County People’s Government Office in China issued instructions for hydropower plants in the region to cut electricity to Bitcoin mining operations earlier this week. The event marks the latest development in China’s crackdown on the country’s cryptocurrency mining industry. Regulators have informed power plants that failure to remove illegal Bitcoin miners from supply will result in the forced dismantling of electricity for mining operations in the jurisdiction. In addition, the notice obliges hydropower plants to submit a report to the China National Development and Reform Commission (NDRC) as soon as the electricity decommissioning process is complete. It is hoped that such reports will be used by the NDRC to improve law enforcement efforts in providing illegal power to cryptocurrency mining operations. Chinese municipal and provincial governments are increasing pressure on Bitcoin mining amid growing environmental concerns and concerns about the financial risks involved in trading and mining cryptocurrencies. This resistance to cryptocurrency mining has raised China’s contribution to the global Bitcoin hash rate to 46.04% as Chinese miners seek refuge in Central Asia and African countries with better regulatory prospects.
El Salvador to launch 200 Bitcoin ATMs as the country prepares to adopt BTC as legal tender
President Nayib Bukele used Twitter to announce that El Salvador is launching 200 ATMs and 50 bank branches across the country in a bid to improve the county’s cryptocurrency infrastructure amid implementation of the Bitcoin Adoption Bill this month next. The change is expected to improve the accessibility and convenience of cryptographic transactions and further promote mass adoption in the country. The new ATMs will be compatible with El Salvador’s Chivo state cryptocurrency wallet, as well as all existing cryptocurrency wallets. Addressing concerns about the bill and its implementation, the president also said that no one was being forced to use Bitcoin and individuals who do not wish to get involved in cryptocurrencies will be able to exchange any Bitcoin they receive for cash at these ATMs. The bill to adopt and accept Bitcoin as legal tender was approved in June by the Salvadoran parliament and aims to reduce transaction costs and integrate the unbanked population into the economy. However, its somewhat hasty implementation and lack of clarity in the regulators’ action plan has drawn criticism from institutions such as the International Monetary Fund and organizations such as Fitch Ratings.
US Infrastructure Project May Affect More Than 60 Million Americans
Coinbase Global Vice President of Tax Lawrence Zlatkin expressed disappointment at the lack of public discourse on the hasty addition of cryptocurrency-based clauses to the US Congressional infrastructure project. The executive pointed out that the hastily inserted amendments on crypto could impact more than 20% of the American population. “Today, about 60 million Americans own cryptocurrency – about one-fifth of the entire US population. These Americans, and the entire crypto ecosystem, deserve more dialogue than the midnight provisions inserted at the last minute,” Zlatkin said in an editorial article on Bloomberg. The infrastructure bill, which was recently passed by the US Senate without a vote on proposed amendments to the crypto tax reporting mandates, plans to raise $1 trillion to fund roads, bridges and major infrastructure projects. Zlatkin explained that outrage at the unfair treatment of the crypto industry and the lack of clarity in the bill’s language goes beyond the crypto community, adding that senators have been contacted by more than 80,000 people in just the past few days. The Coinbase executive particularly emphasized the potentially broad interpretation of the definition of the term digital asset broker and said that, if implemented in its current form, the bill would impose unreasonably strict tax reporting requirements on validators and software developers, expelling them from United States.
VeChain launches blockchain-based platform for carbon footprint reporting
Supply chain management company VeChain announced the launch of a new service that uses distributed accounting technology (DLT) with software as a service (SaaS) to help companies renew carbon footprint data management early on From this week. The Digital Carbon Footprint SaaS service seeks to overcome barriers to trust and transparency in a company’s reporting on carbon emissions data, capitalizing on the benefits of a public blockchain system. “VeChain’s blockchain-based Digital Carbon Footprint SaaS service provides a comprehensive and scalable platform for any company to better calculate, track and report on their carbon reduction initiatives across the entire value chain,” the announcement states. The service allows companies to use their key data metrics regarding their carbon footprint and integrate them with the VeChain network’s leading assurance providers, which can enable the organization to extract new value from the data and improve its sustainability performance.
Binance exposes users to financial risk, says UK financial regulator
The UK Financial Conduct Authority (FCA) issued a warning on the leading cryptocurrency exchange Binance, stating that the exchange could not be effectively supervised and therefore its complex and high-risk products are a danger to users . The notice also prevented Binance from performing all the services that were authorized by the FCA in 2018. This includes advising and dealing with its users’ cryptocurrency investments. The exchange was also asked to suspend all advertising and promotions in the UK. The financial inspector stated that the restrictions imposed on Binance were the result of the exchange’s inability to satisfy the Threshold Condition for Effective Oversight and the lack of adequate protection for its consumers. In addition, Binance’s failure to submit, report and implement its business plan on preventing money laundering and terrorist financing also contributed to the decision, the FCA said. Binance responded by saying it will continue to work with regulators to encourage innovation while ensuring consumer protection.
