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Crypto News: China (again) bans Bitcoin … amid general indifference

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Worst of the Middle Empire – In recent months, the Chinese government has stepped up its crackdown on the crypto industry in an effort to eliminate the industry’s presence in the country. These restrictions have had a negative impact on the cryptocurrency industry, with Bitcoin (BTC ) losing more than half of its value in a matter of weeks. Following the national repression, the Bitcoin blockchain has experienced, for the first time in its history, four consecutive readjustments in mining difficulty. But the Chinese authorities do not intend to stop there.

After the ban on minors, consumer protection

During a press briefing of 27 August , the Deputy Director of Investor Rights Protection Bureau of the People’s Bank of China (PBoC), Yin Youping , said digital assets were nothing other than simple speculative assets. In his remarks, Youping urged investors to protect their capital by staying away from the digital asset market.

“We remind the general public once again that digital currencies such as bitcoin are not legal tender nor have real value. “

Yin Youping from the Investor Rights Protection Bureau of the PBoC

According to Youping, investing in digital assets is just a fad that will soon fall into disuse. The Chinese people should therefore their knowledge of the risks and stay away from cryptocurrency investments.

For once, this umpteenth rant hostile to digital assets has had absolutely no impact on the market for these, which seems to want to start rising again for a few weeks. Indeed, news of Youping’s speech fell on the morning of August 27 , but had no visible influence in the market . Worse, Bitcoin offered us two beautiful bullish candles within 24 hours .

Tweet from Hellmouth Banner signifying indifference with which the market welcomed this new announcement from the People's Bank of China.

We are therefore a long way from the panic phases generated by China’s announcements during the month of May.

Bitcoin price in one hour time unit showing market lack of reaction to China's announcement
Bitcoin price in unit of time one hour (1H) – Source: TradingView

 

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Bitcoin and cryptocurrency trading still active in China despite bans

Youping added that the PBoC was taking drastic measures to end cryptocurrency trading operations in China . The central bank is expected to soon introduce a system that will standardize the crackdown on cryptocurrency transactions, encouraging the general public to promptly report any such activity.

At the same time, the PBoC intends to step up its policy of censoring websites, applications and companies that still allow Chinese citizens to trade in digital assets. Finally, the Chinese central bank also wants to fight against illegal fundraising favored by cryptocurrencies and blockchains.

If China is still cracking down on digital asset trading, it’s because Chinese traders resumed activity in 2021 , despite repeated bans. Indeed, many media, including Reuters and the South China Morning Post , have seen an increase in activity from Chinese traders.

Although exchanges like OKEx and Huobi have fled China and Binance and MXC prohibit the use of the yuan on their platforms, Chinese traders are still finding ways to access the precious satoshis, much to the displeasure of the authorities. Indeed, the advent of stablecoins like the USDT allows traders to do without their reference currency to carry out crypto transactions.

Finally, since 2017, the over-the-counter market has developed strongly in China. Regardless of the field, each new ban creates “shadow trades”. In China, there are, at least until last May, intermediaries responsible for marketing Chinese miners’ bitcoins to individuals. This peer-to-peer market is extremely difficult to pin down, which is why digital asset trading is still present in China.

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Crypto News: A shitcoin on Bitcoin? The Liquid Network sidechain adrift

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And a more secure network – Liquid Network is a sidechain of Bitcoin (BTC) developed by Blockstream company. It has just encountered major stability problems, having caused a total paralysis of the network for a little less than a day.

A general paralysis of 10 p.m.

Launched in 2015, Liquid Network is touted as a solution to the scalability issues faced by Bitcoin. This allows you to make almost instant transactions for much lower fees than Bitcoin. 

On Monday, October 4, the network teams deployed a hard fork aimed at introducing the “Dynamic Federation” functionality . Unfortunately, a bug was present in this update which caused the network to crash .

“This resulted in the activation of the network security mode, so that the blocks stopped being produced until the problem was manually fixed. “

Wiz Developer Statement

Wiz Developer Post - Liquid Network Paralysis Bug Announcement
Post by developer Wiz – Source: Twitter

In reality, the nodes responsible for verifying and signing the blocks were no longer able to carry out their mission. As a result, the network could no longer produce new blocks for 22 long hours . Fortunately, transactions accumulated in the mempool, which made it possible to process them once the situation was restored. 

The developers of the network quickly released a patch, which was deployed by 2 thirds of the validator nodes in the network. It finally took until October 5 , around 9 p.m. , for block production to resume on Liquid Network. 

Twitter post by mempool - Liquid Network back online
Mempool publication – Source: Twitter

Offline networks, a new fad? 

This is not the first time in recent months that we have addressed the subject of a blockchain network found offline. 

Indeed, on September 14, the Solana network was also paralyzed for several hours . As was the case with Liquid, Solana’s block producers were no longer able to produce new blocks . In Solana’s case, the bug was caused by posting too many transactions from a bot. As a result, the mempool found itself congested, which impacted the entire network. 

Fortunately, the problem was only short-lived and the developers were able to quickly find a solution. 

Either way, scalability remains one of the hot topics of cryptocurrencies. Despite its reach through its DeFi ecosystem, the Ethereum (ETH) network continues to face significant congestion issues, driving up transaction fees .

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Crypto News: They try the coup of the century with Cardano (ADA), the tax authorities appear

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Taxes under the radar in Japan thanks to Cardano (ADA)This was without counting the audits of the country’s tax authorities which uncovered nearly $ 12.6 million in unreported taxes by cryptocurrency investors. Almost half of this amount concerns ADA holders.

Cardano and taxes: $ 6 million unearthed by the Japanese tax authorities

According to an October 3, 2021 article from local Japanese media Nikkei, many cryptocurrency investors in Japan failed to pay 1.4 billion yen, or about $ 12.6 million in taxes . Much of the unreported taxes would relate to gains from trading Cardano.

Several investors located in the Kanto region, made up of the metropolitan area of ​​Tokyo and the cities of Saitama, Tochigi, Gunma, Niigata and Nagano, would have benefited greatly from the Cardano rally in 2021 .

The price of ADA has indeed exploded since the beginning of the year, exceeding the $ 3 mark in early September 2021 . ADA is sometimes referred to as  “Japanese Ethereum” . The project had carried out an ICO mainly in Asian markets, between 2015 and 2017. 90% of the participants were from Japan .

 

Cardano arrives late in Japan and (already) becomes a tax haven

Paradoxically, however, the ADA has only been available in Japan since August 2021 , thanks to the Bitpoint exchange which is the first local exchange to list it in the country. Japanese investors previously had to go through foreign exchanges such as Binance or Kraken to be able to trade the ADA.

According to the Japanese tax authorities, traders and investors are increasingly using cryptocurrencies to “save” on the taxes they have to pay . In Japan, cryptocurrencies are currently in a “legally gray” area.

Will these $ 6 million in unpaid taxes from ADA investors harm Cardano’s image with the country’s authorities? The project announced in August 2021 a partnership with Coinfirm, to allow the tracking of ADA transactions by a third party. This initiative to comply with regulatory frameworks was heavily criticized, but the use of Cardano to evade tax in Japan could ultimately provide a concrete justification for such a partnership.

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Cypto News: Why Dogecoin could land on Ethereum (ETH) soon

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Dogecoin (DOGE), NFT, and Ethereum (ETH)The idea is gaining ground , and it’s the turn of the Dogecoin co-founder to defend the importance of such a project for Elon Musk’s favorite cryptocurrency . A bridge between Dogecoin and Ethereum would indeed allow the crypto-doggie to take full advantage of the development of DeFi, and NFTs.A

DOGE-ETH Gateway: Buy NFTs with Dogecoin

On September 30, 2021, Dogecoin co-founder Billy Markus tweeted about the importance of an Ethereum-Dogecoin gateway , so that DOGE can be integrated into NFT marketplaces such as OpenSea . Dogecoin would thus make it possible to purchase NFTs , thus “considerably increasing its usefulness”.

Twitter Mr. Whale reacted to Markus’ post, pointing out that “ implementing DOGE in the NFT ecosystem would be of huge benefit to the community ”. 

The co-founder of Dogecoin, explains the importance of a DOGE - Ethereum (ETH) bridge to allow the purchase of NFT with the DOGE and thus increase its utility.
Post by Billy Markus – Source: Twitter

The DOGE-ETH bridge would allow users to transfer cryptocurrencies from the first blockchain to the second . DOGE transactions in DeFi and NFTs, via DOGE ERC-20 token contracts would also be possible. 

Vitalik Buterin, explained the importance and advantage of such a catwalk, in an interview with podcaster Lex Fridman on June 04, 2021: 

“If DOGE somehow wants to bridge Ethereum, and then people can trade DOGE thousands of times per second inside a looping ring, then that would be unbelievable.” 

DOGE-ETH bridge and burn wallet: dogecoin staking and transformation into deflationary currency

On June 18, 2021, DogeLabs, an organization made up of DOGE developers, reported that they were exploring the possibility of developing a Doge-ETH bridge. The latter would allow hodlers to use Dogecoin for staking on Ethereum

DogeLabs had also announced that it was planning to create a DOGE burn wallet . Developers could build there “applications that send a small portion of the Doge to a public burn wallet to help build a deflationary mode around DOGE’s inflationary growth “.

The Dogecoin already has a leg or two in NFTs, with the non-fungible token containing the Dogecoin’s Shiba Inu valued at over $ 100 million . However, the DOGE community wants to take much more advantage of NFTs, and prove (even more) the usefulness of Dogecoin by allowing the purchase of non-fungible tokens with the latter. The developers even want to make DOGE a deflationary currency, projects that may have something to make less far-fetched this idea that 1 in 4 Americans, according to which Dogecoin is becoming the new Bitcoin (BTC) .

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