China Brings New Forex Rules to Tighten Crypto Trades
Tether Faces EU Regulatory Hurdles: USDT Market Cap Drops $2 Billion
Elon Musk changes X profile to ‘Kekius Maximus’ with Pepe the Frog image
Malaysia Cracks Down on Bybit Crypto Exchange
A NYC bathhouse is mining Bitcoin to heat its pools—and score a “rebate” on its $20,000-a-month energy bill
China Brings New Forex Rules to Tighten Crypto Trades
The authorities in China have introduced new rules requiring banks to flag risky transactions, including those involving cryptocurrencies, making it more difficult to buy and sell Bitcoin and other cryptocurrencies using the yuan.
“Risky” Crypto Transactions
The State Administration of Foreign Exchange’s new requirement, introduced at the end of December, mandates banks to monitor and report “risky foreign exchange trading behaviours.” These include underground banks, cross-border gambling, and illegal cross-border financial activities involving cryptocurrencies.
“The new rules will provide another legal basis for punishing cryptocurrency trading,” Liu Zhengyao, a Shanghai-based lawyer from ZhiHeng Law Firm, wrote in a WeChat post. “It can be foreseen that mainland China’s regulatory attitude towards cryptocurrencies will continue to tighten in the future.”
The new rules apply to all local banks in mainland China. Banks must also track activities based on the identity of the involved parties, the source of funds, and trading frequencies. Furthermore, they are required to implement risk-control measures to restrict the provision of certain risky services.
The Great Crypto Crackdown
Once the leading country in Bitcoin transactions, China imposed strict curbs on the industry in 2017, banning all cryptocurrency exchanges and initial coin offerings (ICOs) overnight. The crackdown forced all then-local crypto exchanges to shut their operations in the country and relocate abroad. Now, some of these exiled exchanges, including Binance, Huobi, and OKX, are among the top names in the industry.
China’s anti-crypto stance intensified further in 2021 when the country’s communist government ordered the closure of mining operations in regions like Sichuan and Xinjiang. It also barred financial and payment institutions from offering crypto-related services and declared that overseas crypto services offered to Chinese residents are illegal.
However, the Chinese government still holds about 194,000 Bitcoins, worth approximately $18 billion, which it acquired over the years from raids and seizures of illegal operations.
Meanwhile, China is the leading nation in central bank digital currency (CBDC) development. The government developed the digital yuan and has been testing it for years through pilot programs. However, it remains unclear when the digital yuan will be released on a mass scale.
Tether Faces EU Regulatory Hurdles: USDT Market Cap Drops $2 Billion
Tether, the world’s largest stablecoin, lost $2 billion from its market cap in December amidst the challenges posed by the European Union’s new Markets in Crypto Assets (MiCA) regulation.
The MiCA regulation framework will take full effect from December 30, 2024.
Exchanges Delist USDT Ahead of MiCA
MiCA rules require stablecoin issuers to obtain certain licenses to operate in the European Union. Tether has apparently failed to meet MiCA’s stringent requirements, which could jeopardize its future in the jurisdiction.
Hence, European exchanges have begun delisting Tether’s USDT stablecoin in anticipation of the regulatory crackdown.
In response, according to CoinMarkCap, USDT’s market cap fell from $140.5 billion to $138 billion over the past week, the largest drop in a year of continuous growth.
Elon Musk changes X profile to ‘Kekius Maximus’ with Pepe the Frog image
Tech billionaire Elon Musk has once again caused a stir on social media with a playful yet cryptic update to his X profile. Musk, on Tuesday (December 31), swapped his display name to “Kekius Maximus” and changed his display picture to a familiar internet meme: Pepe the Frog.
The image features Pepe donning golden armor and holding a video game controller, a humorous and sarcastic nod to the meme’s long-standing presence in online culture.
The meme character Pepe the Frog has become synonymous with internet humor and is often used to symbolise a variety of emotions from absurdity to rebellion. Musk’s decision to adopt this image and name has led to widespread speculation about its meaning and potential implications.
The name Kekius Maximus is not just a random meme reference — it is also associated with a cryptocurrency token. Kekius Maximus is a meme-inspired crypto project that operates on multiple blockchain platforms, including Ethereum and Solana.
The token has gained significant attention recently, surging by an impressive 497.56% in just 24 hours as of December 27, with its price sitting at around $0.005667.
Malaysia Cracks Down on Bybit Crypto Exchange
Malaysia is taking significant steps to regulate the cryptocurrency market. The country has issued a directive to Bybit, a popular crypto exchange based in Dubai, to cease its operations within Malaysian borders. This move comes as part of a broader effort by Malaysian authorities to ensure that all cryptocurrency exchanges comply with local laws and regulations. The Securities Commission Malaysia (SC) has been vigilant in its approach to protect investors from potential scams and financial risks associated with unregulated platforms.
Bybit’s Suspension of Services
In response to the SC’s directive, Bybit has taken immediate action. On December 27, the exchange disabled its website and mobile application for users in Malaysia. This suspension also included halting all advertisements and social media promotions related to its services. The SC’s official statement emphasized the importance of compliance with local regulations. Bybit’s operations were deemed unlawful as it had not registered as a Recognised Market Operator (RMO) under Malaysian law.
The SC expressed serious concerns regarding Bybit’s adherence to local regulatory requirements. Operating a digital asset exchange without the necessary registration is a violation of Section 7(1) of the Capital Markets and Services Act 2007. This law is designed to protect investors and maintain the integrity of the financial market in Malaysia. The SC’s actions reflect a growing trend among governments worldwide to enforce stricter licensing requirements for cryptocurrency exchanges.
Prior to the suspension, the SC had issued a notice to Bybit, giving the exchange a 14-day period to comply with the new directives. This proactive approach by Malaysian regulators highlights their commitment to safeguarding the interests of investors in the rapidly evolving crypto landscape.
In Malaysia, the regulatory framework for cryptocurrencies is evolving. While citizens are permitted to purchase, hold, and trade cryptocurrencies, no digital currency is recognized as legal tender. The SC oversees most digital currencies, treating them as securities under its jurisdiction. This means that any entity wishing to operate as a cryptocurrency exchange must adhere to strict guidelines set forth by the SC.
Malaysian authorities have been actively monitoring the crypto market. In June, the Inland Revenue Board (IRB) conducted raids on various firms that were not reporting their crypto-related activities. This indicates a robust effort to ensure compliance and transparency within the industry. The SC has consistently reminded investors to engage only with RMOs that are registered with the commission. These registered entities must follow stringent regulations designed to protect users from potential risks.
Investors who choose to engage with unlicensed or unregistered entities do so at their own peril. The SC has warned that such individuals are not protected under Malaysian securities laws, exposing them to risks like fraud and money laundering. This regulatory environment aims to create a safer space for cryptocurrency trading in Malaysia.
A NYC bathhouse is mining Bitcoin to heat its pools—and score a “rebate” on its $20,000-a-month energy bill
On the surface, Bathhouse is a classic Brooklyn wellness hangout. The city’s spa-ficionados make the trek to Williamsburg and pay upwards of $45 a day to soak in its pools, relax in its saunas, and socialize with other peak performers.
But beneath the wellness oasis lies a hidden operation: a dozen Bitcoin mining units are churning away 24/7 to power the spa’s two heated pools.
