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Chinese Investors Face Heavy Losses in Crypto Investments Amid Market Downturn

Chinese Investors Face Heavy Losses in Crypto Investments Amid Market Downturn

A recent survey of Chinese investors revealed that crypto enthusiasts have faced a difficult year. It noted that out of 574 respondents, around 59.8% reported losses in their crypto investments this year.

Among them, only 23% managed to see a profit. Out of the remaining lot (17.2%), people indicated their investments neither gained nor lost value, showcasing the volatile nature of the market in 2024, according to the survey.

The crypto market struggles this year can be attributed to factors like tightening regulations, a global economic slowdown, and increased scrutiny from financial institutions.

Chinese investors faced an even more complex scenario due to its stringent regulation on cryptocurrency trading and mining. China’s central bank announced that all transactions related to cryptocurrencies will be illegal, including digital tokens like Bitcoin.

The People’s Bank of China identified virtual currency-related business activities to be illegal and shared that it can endanger the safety of people’s assets. However, recently, speculations have been rife that China may be reconsidering its stance on cryptocurrency.

Justin Sun, founder of blockchain-based platform TRON, shared a cryptic post earlier on X, stating, “China unbans crypto. What’s the best meme for this?”

Rumors of China unbanning cryptocurrency have persisted, with market observers like Sun noting this could impact the global crypto space massively. China used to be one of the largest markets for cryptocurrencies, and lifting the ban would mean an increase in trading volumes and a rise in prices.

Amid the speculation, industry experts like Anndy Lian have discussed the potential for China to reconsider its cryptocurrency restrictions if Donald Trump were to win the upcoming U.S. presidential election. However, Lian noted that given the strained relations between Trump and Chinese President Xi Jinping, a complete reversal of China’s crypto policies is unlikely.

“#China to Lift Crypto Ban if #Trump Is elected? Trump and Xi are not BFFs. It will not unban. At most certain economic zones are granted special rights. For now, Hong Kong is the closest. Remember this,” he said.

His viewpoints reflect the existing complex geopolitical factors and the need for a nuanced understanding of China’s policy-making processes. As of now, investors and market analysts are closely monitoring these developments in the crypto space. The regulatory landscape remains firmly restrictive, without any indication of a policy reversal regarding cryptocurrencies.

Under current circumstances, financial institutions like the People’s Bank of China continue to enforce these regulations, while also working on its own central bank digital currency, the Digital Currency Electronic Payment (DCEP).

 

 

 

 

Source: https://news.shib.io/2024/08/29/chinese-investors-face-heavy-losses-in-crypto-investments-amid-market-downturn/

 

 

 

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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From Skepticism to Support: The Changing Face of US Crypto Politics

From Skepticism to Support: The Changing Face of US Crypto Politics

The landscape of US politics is undergoing a significant transformation, particularly in its approach toward cryptocurrency. Recent developments suggest a marked shift towards a more pro-crypto stance, with potential implications for the future of digital assets in the American economy. This transformation is evident in the actions and rhetoric of key political figures and the legislative trajectory concerning cryptocurrency regulation.

Historically, the US political environment has been characterized by a cautious, if not skeptical, stance towards cryptocurrency. Regulatory bodies, particularly the Securities and Exchange Commission (SEC), have taken a stringent approach, often viewing digital assets through the lens of traditional securities laws. This has led to a series of regulatory actions aimed at curbing what is perceived as the speculative and risky nature of cryptocurrencies. However, the winds of change seem to be blowing, and the 2024 election cycle may very well be a pivotal moment for the crypto industry.

One of the most striking developments in this regard is the increasing support for crypto-friendly policies among prominent political figures. Former President Donald Trump, who once dismissed Bitcoin and other cryptocurrencies as a “scam,” has seemingly shifted his stance. During a recent fundraising event at his Florida residence, Trump positioned himself as a potential pro-crypto president, garnering significant attention from the cryptocurrency community. His alignment with the crypto sector could signal a broader Republican embrace of digital assets, contrasting sharply with the traditionally more cautious approach of the Democratic Party.

This shift is not limited to rhetoric. Legislative actions also reflect a growing pro-crypto sentiment. On May 22, 2024, the US House of Representatives approved the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill represents the first significant piece of crypto legislation to pass one of the chambers of Congress, marking a potential turning point in how digital assets are regulated. The bill’s passage is particularly noteworthy given the historical reluctance of many Democrats to support crypto legislation, fearing it would legitimize an industry they view with suspicion.

The bipartisan support for FIT21 underscores the changing political dynamics. Notably, former Speaker of the House Nancy Pelosi has expressed support for the bill, indicating a willingness to work across the aisle on crypto-related issues. This is a significant departure from the previously adversarial stance many Democrats held towards cryptocurrencies. Pelosi’s support suggests that even within the Democratic Party, there is a growing recognition of the importance of integrating digital assets into the broader financial system.

The shift towards a more pro-crypto stance is also evident in the actions of the SEC. SEC Chair Gary Gensler has been a vocal critic of the crypto industry, advocating for stringent regulations to protect investors and maintain market integrity. However, there is increasing resistance to this approach within Congress. On May 8, 2024, the US House of Representatives voted in favor of a resolution opposing the SEC’s crypto accounting policy, which had deterred banks from handling crypto customers. This resolution, if adopted, would ease the regulatory burden on banks dealing with cryptocurrencies, potentially fostering greater institutional adoption of digital assets.

President Joe Biden’s stance on cryptocurrency has also evolved. Initially, the Biden administration appeared to support the SEC’s stringent regulatory approach. However, faced with declining approval ratings and a growing recognition of the economic potential of cryptocurrencies, the administration has shown signs of softening its stance. On May 22, the White House indicated that President Biden would not veto the House’s decision to oppose the SEC’s accounting policy, signaling a potential shift towards a more accommodative regulatory environment for cryptocurrencies.

The political calculus surrounding cryptocurrencies is influenced by several factors. First, there is a growing recognition of the economic potential of digital assets. Cryptocurrencies and blockchain technology have the potential to revolutionize various sectors, from finance to supply chain management. By fostering innovation and attracting investment, a pro-crypto stance could spur economic growth and job creation, key priorities for any administration.

Second, the increasing adoption of cryptocurrencies among the American public cannot be ignored. A survey conducted by Pew Research found that nearly 17% of Americans had invested in, traded, or used cryptocurrencies. This growing user base represents a significant voting bloc, particularly among younger voters who are more likely to engage with digital assets. Political leaders who align themselves with the crypto community could gain a strategic advantage in upcoming elections.

Additionally, the geopolitical landscape plays a crucial role. As other countries, particularly China, via Hong Kong, make significant strides in developing their digital currencies and blockchain infrastructure, there is a growing sense of urgency for the US to maintain its technological and economic leadership. Embracing cryptocurrency could be seen as a strategic move to ensure that the US remains at the forefront of financial innovation.

Despite the growing pro-crypto sentiment, there are significant challenges and risks that need to be addressed. The volatility of cryptocurrencies remains a major concern. The dramatic price swings of assets like Bitcoin and Ethereum can lead to substantial financial losses for investors. Regulatory clarity is essential to protect consumers and ensure market stability. This includes establishing clear guidelines on issues such as taxation, anti-money laundering (AML) compliance, and investor protections.

In conclusion, the current state of US politics is increasingly turning pro-crypto, driven by a combination of economic, geopolitical, and electoral considerations. The support from key political figures, coupled with significant legislative developments, indicates a shift towards a more accommodative regulatory environment for digital assets. However, this transformation is not without its challenges. Ensuring regulatory clarity, protecting consumers, and addressing environmental concerns will be crucial in shaping the future of cryptocurrency in the US. As the 2024 election approaches, the stance of political leaders on cryptocurrency will likely play a pivotal role in shaping the industry’s trajectory and its integration into the broader financial system.

 

Source: https://za.investing.com/analysis/from-skepticism-to-support-the-changing-face-of-us-crypto-politics-200602548

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Singapore’s crypto players face added scrutiny under new law

Singapore’s crypto players face added scrutiny under new law

SINGAPORE — Singapore on Tuesday passed a law that extends its cryptocurrency regulations to companies with a local presence that provide digital token services outside the city-state, as authorities further tighten rules around the emerging industry.

Lawmakers approved the Financial Services and Markets Bill 2022, which was brought up in parliament for debate on Monday. The law brings digital token service providers created in Singapore but who provide their services elsewhere under the purview of domestic regulators.

The legislation covers industry players who deal in Bitcoin, Ethereum and other digital currencies, facilitate their exchange or offer financial advice on the sale of these tokens, among other activities.

Crypto players operating in Singapore and serving the local market are already regulated by the city-state’s central bank. They are required by law to adhere to licensing requirements as well as be able to guard against money laundering and terrorist financing.

But those who do not provide digital token services in the city-state were not under the same oversight. The new law changes this, requiring all crypto players, whether they serve the local or foreign markets, to come under the same licensing requirements.

“Sad, disappointed — we went 10 steps backwards,” said a member of a crypto lobby group in Singapore who spoke on condition of anonymity. The source questioned the necessity of digital asset players with a base in the city-state being licensed if they do not target domestic consumers, which was a worry for the central bank. “So MAS [the Monetary Authority of Singapore, the city-state’s financial regulator and central bank] is making the assumption that the license is like gold — that everyone will want to get it?”

Alvin Tan, a board member of the MAS, explained the state’s reasoning to parliament on Monday.

“We could be exposed to reputational risks brought by digital token service providers created in Singapore, and which provide services relating to virtual assets such as Bitcoin outside Singapore,” he said. “The FSM Bill seeks to mitigate such risks by licensing these players and imposing AML/CFT requirements on them.”

Singapore is not alone in tightening its scrutiny of the booming crypto sector.

Last month, Thailand issued a ban against payments using cryptocurrencies and other digital assets in a bid to maintain stability in financial markets.

China has banned all cryptocurrency payments and services for disrupting the “economic and financial order.”

In 2019, Japan’s Financial Services Agency imposed stricter information technology requirements on licensed exchanges, following security breaches and hacking incidents that marred the industry.

In January, Singapore published a set of guidelines instructing crypto players to stop marketing or advertising their offerings to retail investors in public spaces, both physical and virtual, calling the trading of such assets “highly risky and not suitable for the general public.”

The law approved on Tuesday has also garnered some positive reactions.

Singapore-based Anndy Lian, chairman of Netherlands-registered crypto trading platform BigONE Exchange, told Nikkei Asia that the city-state’s enhanced regulations are “reasonable.”

“If you walk the ground hard enough, you will see many bad actors and dubious crypto companies using Singapore as a base of their operations,” he said. “We need to properly regulate things so that the bad actors won’t affect this industry’s image.”

Even before the new law hit the books, the MAS had been busy processing license requests. In January it said there were about 180 applications for permits, more than 60 of which were withdrawn or rejected. Only a handful of applicants were successful, though others were awaiting the central bank’s decision.

With the tightened regulations, the central bank is poised to sift through a batch of additional license requests as Singapore-based crypto players that mainly deal overseas are now required to meet the state’s standards if they want to use the city for their operations.

In March, Singapore-based payments company Digital Treasures Center, which provides a platform to facilitate cryptocurrency transactions, said it received in-principle approval from MAS to provide digital payment token services.

Desmond Yong, its chief strategy officer, told Nikkei that crypto players will need to devote additional resources to monitor foreign transactions so as not to run afoul of the new law.

“For companies that are unable to fulfill the AML/CFT requirement, they will need to move out to other countries,” he said. “But with more governments regulating cryptocurrency in different jurisdictions, these companies will soon find it hard to operate.”

 

Original Source: https://asia.nikkei.com/Spotlight/Cryptocurrencies/Singapore-s-crypto-players-face-added-scrutiny-under-new-law

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j