The management of one of the largest Chinese cryptocurrency exchanges, Huobi, announced the termination of all services in mainland China by the end of this year and the suspension of processing accounts of Chinese users for the next 1-2 years. Huobi Global has actually become another victim of the indiscriminate policy of official Beijing, which seems to intend to lose absolutely all leverage on the digital asset market in pursuit of dubious profits from introducing its own crypto into the country's economy. Marketplace users in the People's Republic of China will not be able to open buy orders from December 14 at 11:00 Beijing time. Nevertheless, the crypto exchange does not "slam the door" in front of the noses of its future ex-users, but leaves them a day to "play for the last time" with crypto assets. However, before 12:00 on December 31, Huobi will officially stop supporting absolutely all trading operations in the PRC, following the example of Binance and Kucoin, which left the Chinese market in October-November. Now the main focus is on Taiwan. The special status of the region, which is formally under the "supervision" of China, allows many financial and technical giants to gain a foothold in their territory, as the world's largest manufacturer of mining equipment Bitmain has already done. Will this become an additional catalyst for the alleged military conflict in the Far East? We’ll see.
Repetition of the obvious seems to be trending again with financial conservatives, as the Bank for International Settlements (BIS) has stated that the decentralized finance (DeFi) industry is high risk, lacks investor protection and is prone to fraud (just like in real life). However, BIS went further and concluded that DeFi is subject to "substantial financial vulnerabilities" and could affect fiat-tied cryptoassets (stablecoins), which could cause trust in them to decline, leading to massive simultaneous withdrawals and, in ultimately to default. A brilliant logical chain is built on so-called “downward price spirals,” such as those that result from the redemption of contributions in the investment fund industry. However, not a single such case of influence on fiat from the side of the crypto has yet been recorded. As a result, the authors of a recent article on the BIS portal came to the conclusion that the advantages of DeFi over centralized financial systems are "difficult to detect", and high transaction speed and low commissions are achieved due to small trading volumes. Good analytics, isn't it?
In an interview with 7News Australia, Treasurer Josh Frydenberg said the government is "broadening out the definition of the services and the products that can be regulated," to radically modernize Australia's payment systems and overhaul the cryptocurrency trading regulatory framework. According to the politician, today more than 800,000 Australians own digital coins of one kind or another, so it is necessary to "...take this area out of the shadows and bring it into a considered regulatory framework, which is world-leading." The country's government will begin consultations on the creation of a licensing system for digital exchangers and marketplaces in early 2022 and will advise on regulatory issues for businesses that manage cryptocurrencies on behalf of their clients. But, as usual, any major reforms are only carried out when something breaks: Friedenberg's announcement followed the collapse of the Australian crypto exchange MyCryptoWallet, which on Wednesday asked SV Partners to liquidate its assets and deal with creditors.