Markets are dropping during Asian trading today as fears increase of further shutdowns across the region. Authorities in China seem hell-bent on preventing their citizens trading in digital currencies, which may have flashed a wave of anxiety selling across the board.
According to reports, the Chinese government plans to target methods for trading digital currency by imposing a shutdown, including over-the-counter trading, offshore sites used for centralized trading, and peer-to-peer trading of large transactions.
The report on the state-run Securities Times cites sources at the Leading Group of Internet Financial Risks Remediation, China’s top internet finance controller. There are no specifics on the crackdown, but it is widely being said that the internet police would block access to local and international platforms that provide digital currency trading. China is one of the most heavily censored countries in the world, and its ‘Great Firewall’ already filters all web traffic that the dictatorial communist party does not want its citizens to see.
People who trade in large amount of crypto currencies are the target of this crackdown.
Users of crypto currency have started to use messaging app Telegram in groups to trade and to avoid the ever present web of censorship and restriction in China. Vice director of the Chinese central bank, Pan Gongsheng, told Reuters that China will continue to apply pressure on domestic crypto trades for the sake of financial stability. He went on to state:
“Pseudo-financial innovations that have no relationship with the real economy should not be supported.”
Last year in September the cryptos faced a crackdown, the markets went into free fall, but it survived and recovered soon. A recent crackdown on Bitcoin mining created an evacuation as China-based companies and mining associations moved their operations to friendlier countries. A number of China’s major crypto exchanges, such as Huobi and OKCoin, shifted operations overseas to Hong Kong where more freedom is granted. Because of the widely acceptance of crypto currencies in Japan Huobi is also planning to set up two crypto exchanges in Japan.
Do you think traders in China find a way around the constant restrictions? Share your views in the comments below.
Is Toronto Next to Accept Bitcoin for Property Taxes?
Toronto is the biggest city of Canada with a population of more than 6 million. It’s also one of the leading global financial centers which makes it an attractive place for investors.
Bitcoin has emerged as the leading cryptocurrency in the world and attracted a lot of attention from financial investors. There are many crypto exchanges and investors in Toronto, which makes it an important destination for crypto startups and investors.
Recently, there has been a surge in usage of Bitcoin in the Real Estate world as lot of companies around the world are now accepting Bitcoin for buying and selling of properties. In April 2019, Innisfil, A town located in Ontario, at a distance of about 1 hour drive from Toronto, announced that they will accept Bitcoin for property taxes at the municipal level. In July this year, Richmond Hill announced that they are ready to accept Bitcoin as a payment method for property taxes.
Evan Kuhn, Co-Founder of a Toronto based crypto exchange Coinberry believes that integration of Bitcoin as a payment method for property taxes in Toronto can reduce cost, not only for tax payers, but for municipalities as well. Kuhn mentioned
“It doesn’t cost homeowners to use the service, and it costs the municipalities far less in processing fees”
“A credit card company charges a 3% fee,” he said. “Our fee is .5%, so that’s a lot more beneficial for the municipalities.”
He further explained the entire process to make it simple for the users and for the authorities. “When a resident makes a payment through our exchange, the company immediately converts the Bitcoin into Canadian Dollars and pays the relevant authority, so in basic concept this entire process works like a credit card system but with lower fee for both parties”
Morning Crypto Roundup
- Crypto market entered into a consolidation phase, with market cap at around $265 billion, market is currently trading in a range
- Bitcoin stays above $10,000
- Gray scale reported in a recent report that there are 7.1 million active Bitcoin users worldwide with more than 32 million Bitcoin wallets.
- After Innisfil and Richmond Hills, is Toronto next to explore an opportunity to pay property taxes through Bitcoin?
- According to a report from CryptoCompare.com, Untrusted crypto exchanges are dominating the crypto volume with more than 2/3 share