Golden Morning Post | U.S. monitors Chinese bitcoin miners Virtual currency "mining" violates the law

Headlines

▌**** New York Times: US authorities are monitoring China-linked bitcoin miners**

According to the New York Times on October 13, US government officials are closely monitoring certain cryptocurrency mining businesses linked to China due to national security concerns. One of the locations that authorities are reportedly monitoring is a crypto-mining operation in Wyoming near Microsoft's data centers, which support parts of the Pentagon's operations. In a report on the operation, Microsoft said: "Microsoft has no direct indication that this entity engaged in malicious activity. However, pending further evidence, we warn that industrial-grade crypto-mining, as well as the presence of an unknown number of Chinese citizens near Microsoft data centers and one of the three strategic missile bases in the United States, may pose a significant threat. ”

▌** People's Court Daily: Virtual currency "mining" contracts violate basic legal principles**

Golden Finance reported that the People's Court Daily, which is in charge of the Supreme People's Court, today published an article "Virtual currency "mining" contracts violate basic principles of law", the article pointed out that the Zhengzhou Intermediate People's Court in Henan Province heard a contract dispute case involving virtual currency, and the court found that signing a contract for bitcoin "mining" violated social order and good customs, did not conform to the basic principles of law on resource conservation and environmental protection, and confirmed that the contract was invalid. The purpose of the service room lease contract involved in the case was to use low-priced electricity charges for bitcoin "mining" activities, and the contract violated public order and good customs and was an invalid contract, and the consequences caused therefrom should be borne by the parties themselves. Illegal debts between civil subjects are not protected by law.

Quotes

As of press time, according to CoinMarketCap:

BTC recently traded at $26,868, up or down +** 0.13**% during the day;

ETH recently traded at $1,553.6, a daily increase or decrease of +0.57%;

BNB recently traded at $206.22, up or down +0.19% during the day;

XRP recently traded at $0.4848, a daily increase or decrease of +0.32 %;

DOGE recently traded at $0.0586, a daily increase or decrease of +0.75 %;

ADA recently traded at $0.2464, a daily increase or decrease of -0.09 %;

SOL recently traded at $21.90, up or down +2.26 percent during the day.

Policy

▌****The CSRC has established a two-tier system of "chain of custody - business chain" covering all 35 regional equity trading centers

Golden Finance reported that Jiang Dongxing, deputy director of the Science and Technology Supervision Bureau of the China Securities Regulatory Commission, said at the 2023 China (Beijing) Digital Finance Forum on October 12 that after more than 30 years of development, the capital market has a relatively good foundation for informatization, and is currently facing the challenge of making full use of the new generation of information technology to transform intelligently. In the next step, the CSRC will continue to promote the application of more digital technologies, promote the digital transformation of the capital market, and enhance the real economic capacity of financial services. Jiang Dongxing introduced that in terms of "data makes supervision smarter", the CSRC has built a two-tier system of "chain of custody - business chain" covering all 35 regional equity trading centers, and has made positive progress in market data connectivity and enterprise archive construction, and has been included in the national innovative application pilot of "blockchain + equity market" of the Central Cyberspace Administration of China.

▌**** New York Times: US authorities are monitoring China-linked bitcoin miners**

According to the New York Times on October 13, US government officials are closely monitoring certain cryptocurrency mining businesses linked to China due to national security concerns. One of the locations that authorities are reportedly monitoring is a crypto-mining operation in Wyoming near Microsoft's data centers, which support parts of the Pentagon's operations. In a report on the operation, Microsoft said: "Microsoft has no direct indication that this entity engaged in malicious activity. However, pending further evidence, we warn that industrial-grade crypto-mining, as well as the presence of an unknown number of Chinese citizens near Microsoft data centers and one of the three strategic missile bases in the United States, may pose a significant threat. ”

Blockchain Application

▌**French regulator considers DeFi to be "disintermediated" rather than "decentralized"

On October 12, the Prudential Regulation Authority (ACPR), the regulator under the Bank of France, released a summary of public consultation on the regulatory framework for decentralized finance. According to the summary, the "vast majority" of respondents advocate that DeFi should continue to be deployed on public blockchains, rather than private or permissioned blockchains. However, they acknowledge that these blockchains need to be audited regularly. There is also broad consensus on proposals to regulate intermediaries and certify smart contracts. In conclusion, ACPR considers it "sensible" to establish smart contract authentication rules, define governance to protect DeFi customers, and develop measures to support DeFi blockchain infrastructure.

▌**Luckin Coffee has taken the lead in introducing blockchain technology for business data management, and users can directly view relevant on-chain information

News on October 13, Luckin Coffee has taken the lead in introducing blockchain technology for business data management, and users can now see real-time synchronized blockchain chain information in the official mini program. This move further enhances the transparency of Luckin's business and financial systems, and continuously strengthens the credit enhancement of financial data. While improving transparency, the introduction of blockchain technology has also changed the problems of high handling fees, time-consuming and opaque information of "Internet + finance", and reduced financial operation costs. In the food and beverage consumer industry, Luckin has become a pioneer in introducing blockchain into operational and financial systems.

▌****Basel will provide additional security for permissionless blockchain

Pablo Hernández de Cos, chairman of the Basel Committee, announced that this year there will be updates to the rules for two classes of assets (qualified stablecoins and tokenized traditional assets). He said at the Institute of International Finance and Finance annual meeting that additional safeguards will be provided for permissionless blockchains. Banks and other institutions are engaged in tokenization activities, including money market funds, bonds, and tokenized deposits. Some of these activities are conducted on permissioned blockchains, while others are conducted on permissionless public blockchains.

Cryptocurrency

▌** People's Court Daily: Virtual currency "mining" contracts violate basic legal principles**

Golden Finance reported that the People's Court Daily, which is in charge of the Supreme People's Court, today published an article "Virtual currency "mining" contracts violate basic principles of law", the article pointed out that the Zhengzhou Intermediate People's Court in Henan Province heard a contract dispute case involving virtual currency, and the court found that signing a contract for bitcoin "mining" violated social order and good customs, did not conform to the basic principles of law on resource conservation and environmental protection, and confirmed that the contract was invalid. The purpose of the service room lease contract involved in the case was to use low-priced electricity charges for bitcoin "mining" activities, and the contract violated public order and good customs and was an invalid contract, and the consequences caused therefrom should be borne by the parties themselves. Illegal debts between civil subjects are not protected by law.

▌**Zhou Xiaochuan: Digital currency should adhere to the principles of safety, convenience, low cost, and anti-abuse

Golden Finance reported that on October 12, the 2023 China (Beijing) Digital Finance Forum was officially held, with the theme of "Integration and Upgrading: Building a New Digital Finance Ecology", and Zhou Xiaochuan, Vice Chairman of the Boao Forum for Asia, attended and delivered a keynote speech on digital currency-related issues. Zhou Xiaochuan pointed out, First, in the digital currency development ecology, the digitization of the payment system and the digitization of money are two sides of the same coin. Secondly, with the development of the digital currency ecology, some concepts will be gradually clarified, and everyone is gradually groping, in fact, the concepts are also integrating and upgrading. Third, we must deeply understand and adhere to the two-tier operation system. At the same time, Zhou Xiaochuan also stressed that we must adhere to the principles of safety, convenience, low cost, and anti-abuse. Zhou Xiaochuan added that cross-border transactions are also one of the important exploration directions of central bank digital currency, involving both technology, system and policy orientation.

▌****G20 Finance Ministers Issue Joint Communiqué to Adopt Roadmap for Cryptocurrency Regulation

G20 finance ministers and central bank governors issued a joint communiqué in Marrakech, Morocco, announcing the unanimous adoption of a comprehensive roadmap aimed at regulating crypto assets. The roadmap aims to enhance global financial stability and ensure that cryptocurrencies are effectively managed within the international economic framework. The agreed crypto asset roadmap builds on a comprehensive document published in Delhi last month, which is the blueprint for the currently officially endorsed G20 crypto asset roadmap. This multifaceted roadmap includes policy frameworks, outreach initiatives beyond the jurisdiction of the G20, global coordination, cooperation, and basic information sharing. Addressing existing data gaps in the crypto market is also the main goal of the framework. This joint effort aims to consolidate macroeconomic and financial stability while promoting the effective and flexible implementation of a comprehensive crypto-asset policy framework.

▌**Bloomberg analysts: SEC may make rejection/approval action on GBTC conversion within the next 2 weeks

Golden Finance reported that in response to the question raised by X platform (formerly Twitter) netizens about the "deadline for the SEC to propose new reasons for rejection on the GBTC switch", Bloomberg analyst James Seyffart replied: "This is likely to be seen within next week (or two)." ”

Important Economic Dynamics

▌**Fed Hack: The Fed may have finished raising interest rates

Golden Finance reported, Fed Hack: The Fed may have finished raising interest rates. A longer stance on high interest rates is supported, but it is not possible to determine how long rates need to remain high at this time.

▌** data: stablecoin MAI has been de-anchored to $0.72, down 12.5% in the past 24 hours** News on October 13, according to CoinGecko data, stablecoin MAI is seriously de-anchored, falling 12.5% in the past 24 hours, and is now quoted at about $0.72. MAI began to de-anchor in July 2023 and fell to around $0.87 in September.

Golden Encyclopedia

▌Long and short positions

Long and short positions represent the opposite strategies used by investors and traders to speculate on the price movement of the asset under consideration. In cryptocurrency trading, a long position is started by buying an asset in the hope that its price will rise, while a short position is started by disposing of an asset (usually a borrowed asset) in the hope that its price will fall.

**Disclaimer: As a blockchain information platform, Golden Finance publishes article content for informational reference only and is not intended as actual investment advice. Please establish a correct investment philosophy and be sure to raise your risk awareness. **

Source: Golden Finance