Binance Terminates Crypto Services in China | Bitcoin News

Bitcoin News: 13th October 2021

  • Coinbase is entering the NFT world and will launch its NFT platform soon. [LINK]
  • Binance Announces the Launch of a $1 Billion Crypto Fund
  • Polygon’s daily transactions have dropped by half since the increase in gas prices.
  • Three years after abandoning Bitcoin, Stripe is forming a new crypto team to handle payments.
  •  After China’s Strong Encryption Ban, Binance will stop processing Chinese Yuan transactions. [LINK]
  • The Mayor of Miami has announced a plan to pay city employees with Bitcoin ($BTC).
  • Following China’s crackdown, the United States now controls the majority of the worldwide Bitcoin hash rate distribution. [LINK]
  • In a $130 million cryptocurrency money laundering case, Chinese Zunyi police arrested 100 people.

Coinbase is entering the NFT world and will launch its NFT platform soon

On Tuesday, Coinbase revealed that users would be able to gather, trade, and mint NFTs on the platform in the near future. Users may also sign up for the waiting list on Coinbase right now.

Coinbase Global is jumping on the NFT train by announcing the establishment of its own exchange by the end of the year.

Coinbase NFT, the biggest cryptocurrency exchange in the United States, said on Tuesday that users would be able to mint, acquire, exhibit, and discover NFTs through its peer-to-peer marketplace.

The first launch will only support the ERC-721 and ERC-1155 ethereum-based standards, with intentions to add multichain support later.

Coinbase’s move comes as other cryptocurrency exchanges have announced their participation in the NFT.

Coinbase stated in a CNBC report that the platform would include social elements and will strive to build the creative economy. The NFT Marketplace will be known as Coinbase NFT, according to the site.

Coinbase To launch its NFT Platform
Coinbase To launch its NFT Platform

Coinbase couldn’t afford to be left behind, especially because several of its biggest competitors have just launched their own NFT systems. The platform is attempting to boost its income share through the official Coinbase NFT, as trading fees are its primary source of revenue. Furthermore, because of the high Coinbase fees, consumers usually select alternative trading platforms.

As a result, NFTs might be a good approach to keep users.

Binance Announces the Launch of a $1 Billion Crypto Fund

Binance, a cryptocurrency exchange, has created a $1 billion growth fund to promote blockchain use and support the Binance Smart Chain blockchain.

In a statement, Gwendolyn Regina, investment director of the Binance Smart Chain Accelerator Fund, stated, “With the $1 billion project, our focus will be extended to developing cross-chain and multi-chain infrastructures linked with different types of blockchains.”

About half of the funding will go to blockchain services, as well as other, more specialised aspects of the crypto industry like gaming and virtual reality.

A building programme will allegedly receive $300 million, with another $100 million going to talent development and liquidity incentives. In this case, liquidity incentives imply that the fund will give additional benefits to crypto platforms. One example is increased yields on decentralised finance (DeFi) systems for a limited period.

The announcement of the fund comes after Binance has been embroiled in a protracted and drawn-out regulatory battle.

Binance has had a tough few months, as the exchange has drawn the wrath of financial regulators all around the world.

The exchange’s obvious regulatory flaws have been rectified by regulators in the United Kingdom, Italy, Malaysia, the Cayman Islands, Singapore, the Netherlands, South Africa, and Japan.

However, in the wake of these regulatory issues, Zhao conceded last month that a headquarters will be necessary in the future.

“We have come to realize that we need a centralized entity to work well with regulators,” Zhao said last month. 

Polygon’s daily transactions have dropped by half since the increase in gas prices

To prevent spam assaults on the network, Polygon has doubled transaction fees. The community, on the other hand, has been critical of the upgrade. MATIC is on the verge of a major correction.

Polygon’s on-chain activity is dwindling.

Over the previous several days, the network’s average daily transaction count has plummeted by roughly half. On Oct. 3, about six million transactions were recorded, whereas just three million transactions were reported on Oct. 11.

The recent rise in gas costs appears to be linked to the significant drop in network activity.

Sandeep Nailwal, a co-founder of Polygon, advocated raising transaction fees on the network from 1 gwei to 30 gwei in an effort to reduce spam transactions on the blockchain. The decision drew criticism from the community because of the network’s “decentralisation.” The modification was more of a “suggestion” than a “default upgrade,” according to Nailwal.

While the increase in transaction costs is intended to make spam assaults more difficult, it also serves as a deterrent to developers from creating new apps on top of the Polygon network. After the cost of minting NFT tickets increased by a factor of 30, Get Protocol developer kasperk claimed his project was considering migrating to other networks.

Three years after abandoning Bitcoin, Stripe is forming a new crypto team to handle payments.

Stripe, the largest fintech company in the United States, is forming a new blockchain team to facilitate crypto payments for its consumers.

Three years after withdrawing support for Bitcoin owing to sluggish transaction times and escalating fees, the $100 billion business is returning to the crypto industry.

Stripe is searching for four “Staff Engineers” with experience in the crypto industry, according to a job ad page on the company’s website. On Twitter earlier today, Guillaume Poncin, the head of engineering, announced that he is searching for engineers and designers to “create the future of Web3 payments.”

The prospective engineers and designers will be responsible for “everything from web/mobile UIs to backend, payments, and identification systems,” according to the job description.

Stripe Co-founder John Collison responded to Poncin’s tweet by saying that “Stripe and crypto have grown up at the same time,” and that the company chose to enter the area after seeing “interesting” developments:

“We started writing code the year after the Bitcoin paper dropped. We’ve always kept an eye on things (e.g. Bitcoin support 2013-2015) but last few years’ developments (L2s, new chains, stablecoins, DeFi) are particularly exciting.” Stripe Co founder John Collison said.

 Stripe began accepting Bitcoin (BTC) in 2014, but four years later removed support owing to sluggish transaction times and increasing costs.

Stripe began accepting Bitcoin (BTC) in 2014, but four years later removed support owing to sluggish transaction times and increasing costs.

After China’s Strong Encryption Ban, Binance will stop processing Chinese Yuan transactions

Binance, the world’s largest cryptocurrency exchange, announced Wednesday that it will terminate Customer to Customer (C2C) Chinese Yuan (CNY) trading before the end of this year.

Binance’s latest move is seen as a retaliation for China’s recent cryptocurrency ban. Despite Binance’s withdrawal from the Chinese mainland market in 2017, users may still exchange Bitcoin, Ethereum, and Tether for RMB on a peer-to-peer basis.

Binance will perform a user check and only enable mainland Chinese users to withdraw, withdraw, redeem, and close positions, as well as switch to the “only cash withdrawal” option, according to the official announcement

Following the People’s Bank of China’s (PBoC) announcement that all cryptocurrency transactions in the country are illegal, Huobi Global, another digital currency trading platform, has announced that it will gradually wind down its services in mainland China as the PBoC and other state regulators seek to tighten their grip on all activities involving digital currencies in the country.

Binance abandons China
Binance abandons China

The Central Bank of China recently issued a prohibition that clearly said that all offshore exchanges shall not provide services to local investors and that illicit financing operations using cryptocurrency would be severely punished.

.The market feels that the directive released this time effectively puts an end to the possibility of exchanges and other platforms remaining in China.

Other bitcoin mining businesses have also pulled out of the Chinese market. According to Blockchain.News, Bitmain Technology Holding, a global semiconductor firm, would cease delivering BitBitmain’stminer to mainland China in order to comply with a succession of municipal restrictions on harsh cryptocurrency crackdowns.

The Mayor of Miami has announced a plan to pay city employees with Bitcoin ($BTC)

Francis X. Suarez, the mayor of Miami, is a well-known Bitcoin proponent who has been pushing to make Miami a crypto hub in the United States. Suarez has stated that the city plans to pay government personnel with Bitcoin and allow people to pay city taxes in $BTC sometime in the first quarter of 2021. Many people dismissed the notion at the time, claiming that the municipal treasury was not within the Mayor’s direct authority. Mayor Suarez recently announced that the city would release a request for proposal later this month to make this feasible.

Suarez led Miami submitted a proposal in February this year to enable the city to invest in Bitcoin, but Florida rules prohibit municipal governments from holding such a risky commodity. According to Suarez,

“If we would’ve been able to hold it from the moment that I put the resolution on our agenda, it’d be up by 30 or 40 percent, so I would’ve looked like a genius back then,” he said. “But that’s the way it works.

Current Florida laws may have made it impossible for Miami to invest directly in Bitcoin, but Suarez devised a workaround in the form of Miami Coin. The Miami coin is the city’s first local crypto asset; it is based on Bitcoin, and the revenue earned from mining the token will be used to help the city flourish. Miami Coin has already contributed $10 million to the city’s coffers just two months after its introduction.

Mayor Suarez has previously stated that he intends to make Miami a clean Bitcoin mining hub, since Florida is already at the forefront of the state’s rising popularity of Bitcoin mining.

United States now controls the majority of the worldwide Bitcoin hash rate distribution

The United States currently accounts for more than a third of all Bitcoin mining activity, with Kazakhstan and Russia quickly following behind.

Following China’s broad crackdown on Bitcoin mining, the United States has now surpassed China as the #1 nation in terms of hash rate.

Bitcoin (BTC) miners in America account for 35.4 percent of the overall worldwide BTC mining hash rate distribution, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI).

Kazakhstan (18%) and Russia (11%) are the next two biggest Bitcoin mining centres outside of the United States, according to CBECI statistics.

Following China’s crypto mining prohibition, these three countries have gained substantial market share.

The fact that China has a 0% hash rate, according to CBECI statistics, is maybe of special relevance. Despite the prohibition, it’s conceivable that hidden mining activities are still going on.

USA Becomes the World's Biggest Bitcoin Miner
USA Becomes the World’s Biggest Bitcoin Miner

Following Beijing’s clampdown, the United States, which accounts for the largest part of worldwide hash rate distribution, is likely to complete the predicted East-West miner movement.

Apart from the Chinese crackdown, crypto mining operations in North America have been expanding their capacity by significantly increasing their hardware capacity.

Large orders of mining rigs from prominent manufacturers like Bitmain and MicroBT have been placed by American miners like as Argo Blockchain, Riot Blockchain, Marathon, and others.

Mega Bitcoin mining hubs are likely to spring up in places like Texas and Ohio, boosting the output capacity of US crypto miners even more.

With the growth of the Bitcoin mining industry in the United States, more firms are pursuing a public listing on American stock exchanges.

Chinese Zunyi police arrested 100 people in money laundering case

The Zunyi City Public Security Bureau arrested over 100 individuals for conducting one of the largest virtual currency money-laundering rackets, totaling 800 million yuan, or $130 million in laundered funds, according to the latest report on the Chinese Crypto Ban. Furthermore, the money laundering gang established new accounts and carried out the fraud using exchange giants including as Huobi, Okex, and Binance, according to the authorities.

The anti-fraud task force, codenamed “7.22,” was formed by the Zunyi City Public Security Bureau in conjunction with the Ministry of Public Security.

The task team also revealed 332 telecommunications fraud cases around the country, in addition to the 100 suspects in the $130 million money laundering crime. 

The concealing price, according to the authorities, was 9.56 million yuan, plus the value of the assets involved, which was estimated to be above 3 million yuan. In addition, the authorities confiscated 51 cellphones, 15 laptops, and 511 bank cards, as well as money laundering transactions totalling 800 million yuan.

China’s autocratic government has gone to great lengths to make cryptocurrency operations illegal in the country. 

The Chinese government is now tracking IP addresses in order to prevent illegal crypto mining in the nation. Colin Wu provided an exclusive and frightening document, a Shanghai Telecom sheet that identified the IP address as well as the sort of bitcoin that the address was mining.

Read Yesterday’s news here.

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