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Crypto, Binance closes in China. The miners flee to Siberia but also risk being expelled from Russia

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Crypto, Binance closes in China.  The miners flee to Siberia but also risk being expelled from Russia

Cryptocurrencies are losing ground, Bitcoin drops 1.3% to $ 54,646, Ethereum 1.28% to 3,432, Monero, 3% to 269.39. To worsen sentiment, news that Binance Holdings, the world’s largest digital exchange platform in terms of volume, is shutting down the platform in yuan following the Chinese central bank’s ban on all types of cryptocurrency transactions.

The company said it, explaining that it will close over-the-counter trading on December 31 allowing customers to withdraw invested funds. Binance was founded in 2017 by Changpeng Zhao, a developer who previously created high-frequency trading software (another area that Beijing is tightening on a lot) and is registered in the Cayman Islands.

The platform is joining a number of other companies specializing in the transaction of digital currencies that are completely leaving the country after the authorities’ squeeze announced in September. Competitor Huobi has also announced that it will remove still active users residing in China by the end of the year.

In 2019, Binance launched a peer-to-peer platform that allows users to trade Bitcoin, Ether and Tether against the Chinese currency. That same year, it made its first strategic investment in China, joining a funding round that valued crypto data site Mars Finance at around $ 200 million, Bloomberg recalls.

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The same platform is currently being investigated by both the United States Department of Justice and the Internal Revenue Service on charges of money laundering and tax offenses. And the UK’s Financial Conduct Authority also ordered Binance to stop all regulated activities in the country last June.

The latest crackdown on crypto came on 24 September, when the PboC published a short note on its website explaining that it wanted to block all services on Bitcoin & co., Even those provided by foreign companies in the country. Added to this is Beijing’s new tightening on the financial sector in general, which emerged yesterday, which specifically is focusing on relations between banks and investment funds with local and foreign private companies.

It seems that the Chinese miners have in the meantime moved north to Siberia, according to the Russian newspaper Vedomosti, quoted by Bloomberg. In fact, energy consumption in the Irkutsk region increased by 159% during 2021 compared to the previous year, partly due to the underground cryptocurrency mining operations that moved to Russia after the ban from China, reports the newspaper. Soviet.

And it is no coincidence that the governor of the Irkutsk region, Igor Kobzev, complained about the situation in the letter sent to Deputy Prime Minister Alexander Novak, in which the politician complains of interruptions in the supply of electricity due to the excess demand caused by the extraction. of crypto. Having Irkutsk historically the lowest electricity tariffs in Russia aimed at households due to the historical abundance of energy in the region, the area has attracted the interest of miners. But the continuous rush of raw materials, the ongoing crisis of energy itself with a strong demand that emerged after the lockdowns are also putting the world of cryptocurrencies in difficulty. (All rights reserved)


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