Table of Contents
Bitcoin News: 08th October 2021
- Sri Lanka plans to invest in blockchain and cryptocurrency mining to boost its economy.
- The Mexican stock market is looking into cryptocurrency-related items.
- Is a BTC Crash Coming? As miners are transferring an unprecedented amount of bitcoin to exchanges
- The United States Department of Justice will be forming a National Cryptocurrency Enforcement Team
- McDonald’s China Releases First NFT
- Binance Ends Crypto Derivatives Offerings in South Africa
- Over 20 crypto-related companies have left China as a result of the Chinese crypto ban.
- The Securities and Exchange Commission has approved the Indirect Volt Bitcoin Investment ETF
Sri Lanka plans to invest in cryptocurrency mining
Sri Lanka is looking at the prospects of blockchain technology and crypto mining through a newly formed committee that will investigate the dos and don’ts of building a blockchain network.
Namal Rajapaksa, Minister of Project Coordinating and Monitoring, was the first to propose the committee to the Sri Lankan Cabinet. The goal was to investigate and create digital banking, blockchain, and cryptocurrencies in order to attract investors. The Cabinet aimed to establish a technology-based society, according to the National Policy Framework – Vistas of Prosperity and Splendor. As a result, after recognising the necessity for an integrated system of digital banking, blockchain, and cryptocurrency mining technologies, the Cabinet approved the plan. The Government Information Department issued a press release announcing the decision.
The group, which will include public and private sector professionals, will be charged with researching and proposing an appropriate framework for Sri Lanka based on the legislation and activities of other nations such as Dubai, Malaysia, the Philippines, the EU, and Singapore, among others. In addition, the committee is looking into other countries’ anti-money laundering laws and regulations to prevent terrorism financing and criminal activities, as well as their preferred KYC processes. Finally, the committee would be in charge of establishing a path for crypto mining businesses to invest in Sri Lanka through the Board of Investment.
Mexican stock market looks into cryptocurrency
BMV (Bolsa Mexicana de Valores), Mexico’s stock market, has been looking into the prospect of listing crypto-based financial instruments like futures, according to CEO José-Oriol Bosch Par during a YouTube discussion on Oct. 5.
During the talk, which was mostly focused on how to get started investing, BMV CEO José-Oriol Bosch Par responded to an audience question by saying that the stock exchange has analysed crypto-related assets. He emphasised that one option would be to list crypto futures on the derivatives market MexDer, which is a BMV affiliate.
Quoting Bosch,
“Yes, it’s something we have talked about with financial authorities, that we’ve analyzed.”
While Bosch stated during the video interview that he sees cryptocurrency as part of the evolution of where money is going, he recognises that the financial authorities are treading carefully in order to avoid a repeat of the dot-com boom of the 1990s.
Is a BTC Crash Coming?
The “miner netflow” is the relevant metric here. This measure depicts the total quantity of coins sent to exchanges by miners.
When the miner netflow is negative, it signifies that more coins are being sent to personal wallets than are being sent to exchanges. Such behaviour would indicate that they are bullish on the price and are under pressure to buy.
Positive numbers of the indicator, on the other hand, indicate that miners are sending more Bitcoin to exchanges than they are withdrawing. Such figures usually indicate that there is more selling pressure among them.
The chart on your screen shows the data of miners transferring BTC to exchanges:
Miners moving their coins around might have visible effects on the cryptocurrency’s price because they are the original whales.
Normally, dumping a large number of coins on exchanges would cause the price of Bitcoin to fall. The removal of BTC from exchanges, on the other hand, would have the opposite impact.
However, there appears to be an interesting tendency with miner netflows. Miners failed to capture the top in both the 2017 and 2021 bull runs, selling off at the initial price peak.
After they dumped their Bitcoin, the price dropped a little, but there were enough buyers in each run to counteract their outflows, and the price rose dramatically.
The United States Department of Justice will be forming a National Cryptocurrency Enforcement Team
The United States Department of Justice has established a National Cryptocurrency Enforcement Team (NCET). This group would be in charge of criminal investigations and prosecutions involving cryptocurrencies. Crimes did by virtual currency exchanges and money launderers, in particular.
On Wednesday, October 6, 2021, the Justice Department published a report to this effect on its website.
This comes after the United States was hit by a slew of ransomware assaults earlier this year. The Wall Street Journal reported in September that the Biden administration was “preparing an array of actions, including sanctions, to make it harder for hackers to use digital currency.”
McDonald’s China Releases First NFT
McDonald’s China has announced the introduction of its first NFT, dubbed “Big Mac Rubik’s Cube,” to commemorate the company’s 31st anniversary of entering the Chinese market. Shanghai’s headquarters was likewise established 31 years ago.
This is the first of 188 NFTs that the Chinese firm wants to provide to its employees and consumers in the future. The “Big Mac Rubik’s Cube” is shaped after the new headquarters skyscraper on Shanghai’s west bank. According to the company’s website blog, it will open today, Oct. 8.
According to CEO Zhang Jiayin, McDonald’s China has become the first domestic restaurant chain to issue a non-fungible token.
McDonald’s has always prioritised new fashion trends and cutting-edge technology, according to him
At this special moment, we use the form of the NFT to share McDonald’s innovation, digitalization and trending art with employees and consumers.
According to the website, the NFT represents McDonald’s values of service, tolerance, integrity, community, and family, as well as love, technology, and trends.
McDonald’s in El Slavador took a step farther than merely releasing NFTs in early September, according to U.Today, and began taking Bitcoin as legal money in the nation.
Binance Ends Crypto Derivatives Offerings in South Africa
Earlier today, the Binance cryptocurrency exchange announced the suspension of important crypto derivatives offers in South Africa. According to the world’s biggest crypto exchange, certain products and services will be discontinued in the region to comply with local legislation. Futures, Options, Margin trading, and leveraged tokens are among the crypto derivatives services that have been suspended with immediate effect.
Existing customers will have 90 days to cancel their open holdings, but will not be able to open new ones, according to the crypto exchange. According to the official statement,
“Users will have 90 days to reduce and close their positions for these products. Users will be able to top-up margin balances to prevent margin calls and liquidations, but they will not be able to increase or open new positions. Users will no longer be able to manually reduce or close their positions after 6th January 2022 11:59 PM (UTC). Thereafter all remaining open positions will be closed.”
This would be the fourth time the crypto exchange has made an announcement about its crypto derivatives offers throughout the world. The exchange’s futures offers were first suspended in Europe, then in Australia, Hong Kong, and now South Africa.
The world’s largest crypto exchange by trading volume is aiming to build a consolidated headquarters as part of its regulatory reform plans, following a series of statements to mend its ways with authorities around the world. Changpeng Zhao, the exchange’s CEO, has stated that Ireland may be a future location for Binance. Speculations arose when Binance recently registered three companies in the nation.
Until recently, Binance has claimed that they want to be genuinely decentralised, and hence have no intentions for a physical headquarters. However, a series of regulatory warnings filed against the crypto exchange by almost a dozen nations has pushed them to settle for a consolidated headquarters.
Over 20 crypto-related companies have left China
The new China crypto prohibition, according to major news site China Securities Journal, is pushing more than 20 cryptocurrency-related businesses (trading, mining, etc.) out of mainland China.
Huobi, the region’s main exchange, is one of them. In addition, China’s Inner Mongolia autonomous province has shut down 45 crypto mining enterprises.
The latest cryptocurrency ban in China was announced in September, after lesser bans—mainly targeting crypto miners—had been in place since May, when Elon Musk tweeted that Tesla had ceased accepting Bitcoin owing to its carbon footprint and advised BTC miners to convert to renewable energy.
Following suit, but on a far bigger scale, Chinese officials began to shut down crypto mining operations in their local energy centres.
According to the China Securities Journal, more than 20 cryptocurrency businesses have expressed their strong intention to exit from the Chinese market entirely as of Oct. 7, after all bitcoin transactions were declared unlawful.
BiKi, BHEX, CoinEx, and Renrenrenbit are all doing the same thing. Huobi has advised its customers to transfer their money to other platforms and wallets, stating that it would cease operations in mainland China by the end of December.
The SEC approves Volt Bitcoin Investment ETF
The Securities and Exchange Commission (SEC) of the United States has approved a Volt ETF — Volt Crypto Industry Revolution and Tech ETF (BTCR) — that invests in bitcoin-related tech firms and infrastructure. This is a major step forward for the cryptocurrency industry, which has yet to have any ETFs with direct exposure to bitcoin approval. The fund would invest in both domestic and international space firms.
Companies that are part of the Bitcoin Industry Revolution are defined in the prospectus. To be eligible for investment, these businesses must have held a majority of their net assets in bitcoin over the last 12 months.
They can also be those that generate the majority of their revenue or earnings from bitcoin mining, lending, dealing in bitcoin, or producing bitcoin mining equipment, as indicated by their recent filings.
However, Canadian ETFs, private funds, and Grayscale’s bitcoin trust will be excluded. It will not invest directly in bitcoin or other cryptocurrencies, like other ETFs that have been registered in recent months.
In June 2021, Volt applied for the ETF to be approved for the first time. BitWise filed an ETF that is identical to this one.
The SEC has been wary about certifying ETFs, fearing that there aren’t enough safeguards in place to protect investors. SEC Chair Gary Gensler, who has shown support for bitcoin futures-based ETFs, believes that a regulatory framework must be in place before ETF approvals. As a result, there are many ETFs on top of the SEC’s desk, several of which aim for direct exposure to bitcoin.
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Read Yesterday’s news here.
