This Week in Crypto – June 25th
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Miners Leave China as Anti-Crypto Crackdown Intensifies
Many in the crypto space have seen this cycle before. Only this time, the gravity of the seriousness is making some uncomfortable. Miner migrations like this have happened in the past, with little to no effect on the market price of Bitcoin. On the contrary, it may even bring about positive changes if it encourages miners in other countries to use cleaner, more efficient technologies. However this is only one part of China’s crackdown, and their actions are making people nervous.
China is also hardening its stance on restricting cryptocurrency trading with renewed ferocity. According to ABC News, these laws were first established in 2013. The Chinese government is once again urging banks to crack down harder on individuals trading virtual currencies.
Throughout all of this, China did not ban owning cryptocurrency. However, extreme enforcement may also discourage interest among individual speculators by increasing the risk or perceived risk, of individual punishment.
Punishments might include more than losing your bank account. Although it wasn’t specifically mentioned in their most recent statements, it appears that anyone involved in a flagged transaction could be permanently downgraded in China’s “social credit” system. A blacklist that can restrict access to everything from airline flights to high-speed internet, with little in the way of due process. At the end of the day, China’s loss could be the world’s gain, but there are hurdles to overcome.
NFT Soccer Trading Cards Coming Soon
Official news from the German Football Association (DFB) announces the release of national soccer team NFT (nonfungible tokens) cards. This follows the report regarding their partnership with a major blockchain-based fantasy soccer game provider, Sorare. The association is creating player NFT cards that can be used in Sorare’s Global Fantasy Football game.
“Especially in the Corona pandemic, digital offers were and are the only way to enter into direct exchange with our fans. But even though the Corona crisis will hopefully soon be over, we want to continue to use the possibilities of digitalization much more intensively, also with our partners, and offer our fans new interactive opportunities”
Holger Blask, DFB’s managing director of marketing and sales
Founded in 2018, Sorare is a global fantasy football game that allows users to play with officially licensed digital cards featuring 140 football clubs. As part of their official license agreement, the DFB will create digital collectible cards on the Ethereum blockchain for 18 players on the German national team. Last week, the French Football Federation launched its own series of player NFTs prior to the team’s match against Germany.
Bank of Israel Looking Into Central Bank Digital Currency
Local reports indicate that the Bank of Israel is experimenting with using Ethereum and NFT’s (nonfungible tokens). These reports indicate that this is a part of its ongoing digital shekel research. This statement comes from the Israeli financial news site Globes and later reported by BNN Bloomberg.
Globes’ sources for the claims remain undisclosed. The report alleged that the Bank of Israel completed its pilot in an experimental, closed environment based on Ethereum’s architecture. This includes the trial distribution of tokens representing digital shekels and their transfer among digital wallets.
Additionally, Globes claims that as a part of its pilot, the Bank of Israel was able to successfully program a car ownership certificate transfer using NFT’s. In this test, the NFT payment was the condition for the transfer of the certificate. They completed the transaction instantaneously and without any risk or need for a central intermediary or trustee.
Joe Biden Nominee for Treasury Department Will Prioritize Crypto Regulations
On a Tuesday hearing of the Senate Committee on Banking, Housing, and Urban Affairs, Brian Nelson took center stage. Nelson, President Joe Biden’s nominee for secretary of the Treasury Department’s division on terrorism and financial crimes, said he would prioritize implementing new regulations around cryptocurrency. He aims to push for implementing the Anti-Money Laundering Act of 2020. Nelson states that if he is confirmed for the position, he will focus on Anti-Money laundering regulations adding that cryptocurrency is a particular priority.
Nelson addressed some concerns regarding “the damage done by crypto heists,”. He says these regulations will strengthen regulators’ ability to prevent anything like this from happening again.
The creation of crypto is an act of “responsible innovation… If I am confirmed, I will prioritize implementing the pieces of that legislation, including new regulations around cryptocurrency… I think that legislation provided new authorities — or clarified the law — that cryptocurrencies or currency in whatever form, be it virtual or fiat, is covered by the Bank Secrecy Act.”
Brian Nelson, current nominee for the secretary of the Treasury Department’s division on terrorism and financial crimes
That’s the end of this week’s recap. If you want to learn more about cryptocurrency with NetCents, make sure to subscribe to our blog below! If you see an interesting story that you think we should feature, send us a message on Facebook, Twitter, or Instagram.
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