Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time

“There is a small chance that these cryptocurrencies could become very, very valuable, and you don’t wanna not be exposed to them,” said Thomas Peterffy, who has been a Bitcoiner since the 2018 bear market.

While the brokerage service provider started offering crypto trading services just now, the firm’s founder has been involved with Bitcoin in a personal capacity for the past three years.

In an interview with CNBC, Thomas Peterffy, the founder of Interactive Brokers, revealed that he has been a Bitcoiner since 2018. This means, Peterffy bought Bitcoin during the bear market, showing his conviction in the leading crypto asset.

“I have had Bitcoin for three years in my portfolio,” said Peterffy on Thursday.

Earlier this week, Interactive Brokers, which manages $360 billion worth of assets, partnered with New York-based crypto broker Paxos — which was also chosen by payment giant PayPal to enable their digital asset services — to start offering its 1.5 million customers the option to trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

In the interview, Peterffy also revealed that he wanted to do this for some time now and finally took the step.

“I’ve been itching to do this because many of our customers have been asking for this, especially registered investment advisors whose clients are asking for some crypto exposure so we’ve been wanting to do this for quite some time.”

“Great Compression” Coming

The founder of one of the leading traditional brokers also shared that they are offering crypto trading services at low prices, at 0.12%, which he said is about half as much as the next lowest platform Gemini and one-third of Coinbase.

“So yes we have been itching to do this for a long time and we’re really happy to be able to do it.”

He actually believes that there is “great compression” coming in trading cost, which is going to go down in cryptos just as it has gone down in securities.

As for crypto being used as a payment mechanism, AMC Theaters CEO tweeted this week that they will be accepting Bitcoin, Ether, and other cryptos as payment for online tickets and commissions; Peterffy doesn’t really see crypto that way.

“Frankly, it doesn’t make sense to me because what is the advantage of these cryptocurrencies visibly,” said Peterffy, adding stablecoins are stable “just like the dollar” while being “better, easier regulated,” and the mechanism of using it for payment equally as simple.

“So, I don’t see it as but you never know so I think there is a small chance that these cryptocurrencies could become very very valuable and you don’t wanna not be exposed to them.”

Call for Clarity

When it comes to regulation with the SEC Chair working overtime to regulate the crypto industry and saying the space is troubled with fraud, hype, and abuse, Peterffy said these “criticisms are fine” but called for clarity.

“We really need to know what to do, and nobody is telling us,” but at the same time, the regulators come after companies two to four years down the road, and they accuse them of not doing things right, but they didn’t ever clear what to do in the first place, he said.

Commenting on the crypto offering high-yield, Peterffy does not understand how they can be so high yield, especially for a stablecoin. While it can be so long as people want to borrow the crypto and are willing to pay a lot for it, “otherwise I don’t see where the yield is coming from, and then I don’t see where the money comes from, it usually doesn’t come from a good place,” said Peterffy.

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Author: AnTy

May Is Headed to be One of Bitcoin’s Worst Months, Bulls and Bears Fighting for Dominance

There is still very heightened fear in the market, but Bitcoin’s Relative Strength Index (RSI) shows some oversold condition. The crypto industry needs to see “heavy investor inflows” to break out higher and enter the bull mode.

  • One of the bloodiest months in Bitcoin’s history is now coming to an end.
  • After having a spectacular Q1 2021 and Q4 2020, the leading cryptocurrency is on for a red quarter.

April recorded a mere 1.7% loss after striking a hatrick of green months in 2021 and a total of six green months in succession. Now, May is heading for its worst month.

In the last five years, before May 2021, November 2018 during the bear market marked the worst month with 36% losses. March 2020 saw Bitcoin price falling to $3,800 only recorded a 25% drop, even Jan. 2018 and March 2018 registered bigger losses at 27% and 32%, respectively.

This month, the price of Bitcoin went from about $56,800 to as low as $30,000 on Coinbase and nearly $28k on other crypto exchanges. As of writing, BTC/USD is trading around $37,000, representing a 35% loss in the month right now.

It is to be seen if May 2021 would end up being the worst as the second half of 2011 was also a brutal one with down months recording losses of 38.92%, 37.46%, and 36.26%. Also, Dec. 2013 had a 34.6% drop.

And this much loss in the month has the Crypto Fear & Greed Index falling to levels not seen in March 2020.

The first half of the month showed greed in the market, with the index having a reading of 73 only to drop to 10 in the latter half of the month. Today, we see some relief with a reading of 18.

However, in the South Korean crypto market, sentiment remains of exhaustion, noted DooWanNa, co-founder of StableNode. He added,

“Much fewer alt discussions, especially Korean alts, now. Many are focusing on BTC movement as many know if BTC nosedives, they are all screwed anyway. ADA and ETH holders are still optimistic. But for DOGE, XRP, ETC holders? Not so optimistic.”

But this much fear in the market means we could see the market change direction soon. Economist and trader Alex Kruger said,

“When the Crypto Fear & Greed Index gets this low, a strong rally often follows. The index is now as low as it was the day after Black Thursday in 2020.”

Also, Bitcoin’s Relative Strength Index (RSI) recently dropped to 23 and is currently around 38. When the RSI is below 30%, an asset is usually considered oversold and overbought above 70%.

According to Kruger, the fact that Bitcoin had its 54% retracement combined with a supportive macro environment meaning ample liquidity — interest rates are still virtually zero and money printing isn’t stopping — increasing adoption and record stablecoin balances support the bull case for cryptocurrencies.

But at the same time, there isn’t a lack of bearish factors either. The first being China not done cracking down on crypto. However, China’s strong stance against Bitcoin despite the central bank governor calling it an “investment asset” last month came just ahead of the politically sensitive 100th anniversary of the ruling Communist Party on July 1.

Also, the exchange rate between China’s yuan and the stablecoin Tether, one of the key gauges of local sentiment, fell 4.4% after the government’s warning but has since recouped over half of the loss, as per data platform Feixiaohao.

Furthermore, reduced corporate demand due to ESG, reduced institutional demand, funds having bought the top, taper talks worsening the macro environment, short term levered demand wiped out, with gas prices on Ethereum very cheap suggesting retail being dead, and incoming US regulations add to bearish concerns. Kruger noted,

“For the Bull Case to emerge victorious, the crypto industry needs to see heavy investor inflows (which I expect). This coming week is crucial.”

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Author: AnTy

Crypto Miners Taking Advantage of Hot Market to Raise Funds

Cryptocurrency companies are taking full advantage of the ongoing bull market. There is a lot of euphoria present in the market as Bitcoin becomes a trillion-dollar asset and the overall crypto market cap grows past $1.7 trillion.

Already, we have seen the leading US exchange Coinbase filing to go public with a whopping $100 billion valuation. This is only expected to lift the market mood further, described by some as a watershed moment for the crypto industry.

Another crypto exchange Kraken is on track to do the same, but not until next year. ICE backed Bakkt took the SPAC route, and so did the Bitcoin miner Cipher.

The same can be seen happening in China, attracting millions of dollars.

Chinese Bitcoin mining machine manufacturer Ebang International Holdings conducted two fundraising rounds just last month. The company that debuted on Nasdaq in June raised $170 million.

Eban plans to use the newly raised capital to expand into crypto mining, to open crypto exchanges in Canada and Singapore, and to launch a Robinhood-like Bitcoin trading platform. Guo Yi, COO at Univest Securities, which underwrote the deals said,

“Ebang’s growth story is very attractive to institutional investors … fundraising by all industry players is getting busier thanks to the bitcoin bull.”

Last month, it also announced that it would be launching Dogecoin (DOGE) and Litecoin (LTC) mining operations, for which they completed a design of a chip for simultaneous mining.

A newcomer, another Chinese company, Code Chain New Continent Ltd, the waste recycling company raised $25 million in February to foray into Bitcoin mining, for which it has ordered 10,000 machines. David Feng, co-CEO of Code Chain said,

“Bitcoin prices present us with a unique opportunity to establish mining operations.”

Another Nasdaq-listed Chinese Bitcoin mining machine maker, Canaan Inc., is expanding into mining.

In private markets, “competition is white-hot and filled with sharp elbows,” said Jehan Chu, managing partner at Hong Kong-based blockchain venture capital firm Kenetic Capital. “Every good-quality funding round is oversubscribed within a week of it being announced.”

Crypto miner Argo Blockchain announced this week that it had raised around £26.8mln (nearly $37.5 million) through a placing of new shares to institutional and other investors. It will allow the company to complete an investment in Pluto Digital Assets and pursue strategic opportunities in crypto mining, decentralized finance (DeFi), and Web 3.0 initiatives.

Cobo, a crypto custodian and wallet service provider, is also planning to launch a new round of venture capital funding this month to finance its international expansion. “The market is bullish, and our business is growing very, very rapidly,” said Jiang Changhao, co-founder and CTO of the Beijing-based company, aiming for tens of millions of dollars.

Amidst this, the world’s largest crypto-mining equipment maker, Bitmain, has been the target of an investigation into illegal talent from Taiwanese firms over a period of three years. Taiwan prohibits firms from China from recruiting locally or doing business without prior approval.

In other news, JPMorgan has filed for a “Cryptocurrency Exposure Basket” through companies that invest in digital assets. The referenced stocks are Riot Blockchain, NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company Ltd., and others.

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Author: AnTy

Bitcoin Lending Grew Nearly 12x; Only Accounts for 0.15% of the $20T Total Collateral Market

There is also growing demand for Ether among traditional actors entering crypto lending with ultra-high-net-worth individuals, corporations, traditional hedge funds, and family offices wanting to enter the market looking to generate excess yield on idle cash.

Total active collateral in the Bitcoin lending markets has grown from $1.9 billion in Q3 2019 to a whopping $24.3 billion in Q4 2020, reveals the latest joint report by Arcane Research and crypto exchange Bitstamp.

The crypto lending market is simply flourishing, but it has a long way to go with the collateral markets’ current size estimated to be $20 trillion, providing a huge potential for bitcoin as collateral.

Over 400,000 BTC are estimated to be used as collateral for Bitcoin-backed loans today, doubling over the last year, reads the report. It is particularly used to leverage up and buy more crypto for arbitrage, market-making, tax deferment, and the need for fiat and miners covering costs.

The interest rate on Bitcoin deposits is currently high at 6-10%, which is expected to decline as more BTC are collateralized, and the crypto sector grows.

In total, 625,000 BTC, approximately $30 billion, are used as collateral in the crypto market today, based on estimations of collateral held in the derivatives market and tokenized BTC in DeFi. Still, bitcoin collateral only accounts for 0.15% of the total collateral market, which is growing rapidly, states the report.


Arcane Research expects further growth in the BTC lending market, which could be “very bullish” for Bitcoin as it allows users to employ their cryptocurrency to serve their everyday fiat-needs, without requiring the hodlers to sell and realize profits.

Bitcoin, which can be transferred around the world instantly, at almost no cost, is a superb collateral asset because it is without both counterparty risk and credit risk, reads the report.

Institutions are just as interested in the crypto lending market, with institution-focused Genesis seeing a YoY growth of 245% in their outstanding loans.

One of the market-leading companies in the lending market, Genesis has seen incredible growth over the past year. Their outstanding loans surged to $3.8 billion in Q4 of 2020, a roughly 80% growth from Q3.


The company further processed nearly $20 billion on loans last year to institutions only, “showing tremendous demand for traditional actors entering crypto lending.” In Q4, the company also pointed to the inflow of institutional lenders as well with ultra-high-net-worth individuals, corporations, traditional hedge funds, and family offices wanting to enter the market for the first time looking to generate excess yield on idle cash.

But it isn’t only about Bitcoin; there is also growing demand for Ether among institutions. There has been a steady increase in ETH loans outstanding, which grew 177% during the last three quarters of 2020.

Like BTC, this growth was attributable to ETH’s price inflation, the biggest reason was tied to in-kind placements in Grayscale’s Ethereum Trust, according to Genesis.


BlockFi is another company leading in crypto lending with over $4 billion in outstanding institutional loans. According to the report, BlockFi’s internal numbers show that the company is a clear competitor to Genesis on the institutional side.

In 2020, BlockFi processed $18.6 billion in loans to its institutions and private clients, and by the end of the year, it had $4.4 billion in outstanding institutional loans. These clients aren’t just based in the U.S. either, just 60%, but spread across the world — 25% in the Asia-Pacific and the last 15% are based in Europe.

Other notable competitors in this sector are Celsius which processed over $8 billion in loans, Nexo which has over 1 million users and shares profits with its token holders, and Nebeus, which was one of the first movers in 2014.

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Author: AnTy

LibertyX Confirms Bitcoin ATMs at Tesla Gigafactory’s; Elon Musk Questions the ‘Accuracy’

It now appears there is actually a Bitcoin ATM at the Tesla Gigafactory based in Nevada; this is despite Tesla founder Elon Musk downplaying the existence of one, following a tweet by Fold CEO Will Reeves, who claimed to have sighted the ATM over the weekend. The tweet also featured google map images, which reveal that the ATM sits close to the mega facility’s North-East section.

Finbold, which also reported on this news yesterday, seems to have gotten some insights on who might have installed the Bitcoin ATM. According to its Sunday report, speculations were that Bitcoin ATM maker, LibertyX, is the company behind these developments at Tesla. In a follow-up of the same, Finbold has since received a confirmation from the LibertyX team that they are responsible for the upgrade.

LibertyX was keen to highlight that it did not install new machines but upgraded the software of three ATMs in the factory to integrate a Bitcoin selling feature. The firm, which already has 5,000 live ATMs, plans to scale this to over 100,000 in the near future; its ATM manufacturing partners are Hyosung and Genmega. LibertyX also confirmed that the Bitcoin ATMs at Tesla has been live since August and can only be accessed by employees,

“The Tesla locations have been live since August. The ATM is currently only accessible for employees.”

While the Tesla founder is not much of a Bitcoin bull-like Twitter and Square CEO Jack Dorsey, he has previously sighted that he owns .25 BTC sent to him by a friend back in the day. In fact, LibertyX is hopeful that Musk will increase his BTC portfolio size with newly integrated Bitcoin ATMs at Tesla’s Gigafactory,

“Elon, 0.25 BTC isn’t enough, and now that you can buy bitcoin from the 3 on-site Gigafactory ATMs, you don’t even need to leave home.”

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Author: Edwin Munyui

8 Public Listed Companies are Holding Bitcoin in Treasury; Who Will Be Next?

Today, there is a lot of green in the crypto market.

In the past 24 hours, nearly $15 billion has been added to the overall crypto market cap.

And all of this has been because of a nice pop up in Bitcoin. Yesterday, the price of BTC jumped to nearly $11,000 and today it surpassed it.

This 5.6% jump in BTC price has been the result of Jack Dorsey’s payments company Square making a $50 million investment in Bitcoin, which represents 1% of its assets.

“Given the rapid evolution of cryptocurrency and unprecedented uncertainty from a macroeconomic and currency regime perspective, we believe now is the right time for us to expand our largely USD-denominated balance sheet and make a meaningful investment in bitcoin,” noted Square in its Bitcoin investment whitepaper.

These 4,709 BTC were purchased over-the-counter over a predetermined 24-hours period to maintain transaction privacy and price slippage. These BTC are stored in its “Subzero”, the open-source Hardware Security Module-backed solution.

Gaining Momentum

Though not much, Dorsey’s only bitcoin approach is to “start small and hold.”

The community is super stoked about this, seeing it as a big development that would bring others into the market.

“A big deal,” commented Galaxy’s Mike Novogratz. “It’s not the first guy dancing. It’s the second guy. This is now a movement. Corp balance sheets.”

Novogratz also revealed that Galaxy also “has a lot of BTC on our balance sheet.”

With this, now a total of six public companies viz. MicroStrategy (1st and 2nd), Riot Blockchain, Cypherpunk Holdings, and Grayscale Bitcoin Trust hold Bitcoin in their Treasuries.

Source: Bitcoin Treasuries in Publicly Traded Companies

Amidst this market euphoria, other companies also revealed that they have also invested in Bitcoin.

eToro CEO divulged that they had BTC in their treasury since 2011 and are “still Hodling.”

Jesse Powell, the founder, and CEO of crypto exchange Kraken, also admitted to it in a roundabout way as he answered a crypto enthusiast asking about when his company would make it to this list.

“You think Kraken hasn’t been accumulating bitcoin over the last 9 years?” Powell said.

While corporations adding bitcoin to their balance sheet is bullish, it is also “overrated,” according to trader and economist Alex Kruger who said, “The function of a corporate treasury is not to *invest*. Corporate demand for gold as an inflation hedge is minimal. Thus the likelihood of a bitcoin domino effect among corporates is very low.”

But the interesting thing that could happen, if this becomes a trend is “major banks would be forced to have a crypto team on payroll to service corporate clients’ hedging needs,” he added.

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Author: AnTy

DeFi Benefiting from Renewed Risk Appetite, YFI Enjoying a 30% Turnaround

There have been rumors floating on the Crypto Twitter that the creator of the DeFi darling YFI, Andre Cronje, has “permanently left the lead of development and possibly the project after reports he fell in depression.”

Some even say, “the YFI Team is trying to mitigate the situation with a cover-up.”

However, CL, who works on the design at Yearn.Finance refuted these rumors with a simple “he did not quit.”

Cronje hasn’t been active on his Twitter either; his last tweet was on Sept. 29, right after the Eminence.Finance debacle which rug pulled $16 million.

This isn’t the first time the market is talking about Cronje’s exit from the project. In early August, in an interview, he talked about quitting but after a clear mind reaffirmed the crypto community that he isn’t going anywhere any time soon, at least, “until there is nothing left to build.”

“This space won’t get rid of me,” he added.

Before that, back at the end of February, the “toxic community” of DeFi had pushed him to make a similar decision, but he said he learned his lesson.

A Turnaround

Unlike the last time when his quitting crashed the YFI price by 22%, the positive momentum in the market has YFI jumping following the correction, of course.

In mid-September, YFI hit its all-time high at above $44,000, surpassing 1 BTC the previous month and hitting BTC’s ATH before bitcoin.

But before Sept. was over, YFI crashed more than 54%, as the DeFi frenzy started to cool off. The pullback after a wild rally has been expected. But the DeFi correction didn’t stop there.

And yesterday, it went down as low as under $12,300, another about 40% drop and took all the DeFi down with it.

“Volume indicates that may have been the YFI bottom, and the DeFi bottom by extension,” said trader and economist Alex Kruger.


The trader also added for further confidence in this DeFi bottom; we need stocks not to go on full risk-off mode and “Cronje to behave like a grown-up – Bet he’ll come out of his cave within weeks, release a new product, make YFI pop 30-50% in days, and have his sycophants like his boots.”

And today, we have finally started uptrending that YFI surging above $15,000. With a jump in price, other metrics are growing too.

YFI, however, is not the only one propelled by Bitcoin’s positive move yesterday, small-cap, DeFi related assets are the ones benefiting from the renewed risk appetite.

YFII is leading with 65% gains along with with the likes of bxrz (28%), UMA (27%), AKRO (25%), RUNE (23%), SUSHI (21%), UNI (20%), CRV (17%), and LEND (13%).

“Despite the re-pricing of various tokens that dominate DeFi ecosystem, the actual amount locked remained relatively sticky and largely unchanged,” said Denis Vinokourov of Bequant. “Pointing to profit taking, as opposed to capital flight related flow,” he added.

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Author: AnTy

Winklevoss Twins Make a Case for $500,000 per Bitcoin as Fed Sends Markets Higher & Dumps Dollar

Although there was nothing “historic” about the Federal Reserve Chairman Jerome Powell’s speech yesterday, as of yet, the much-hyped Jackson Hole speech failed to cool down the markets.

The stock market continued to roar higher, making new all-time highs. Every asset reacted to Fed’s announcement that it would allow inflation to run above its longstanding 2% target but only for the markets to retrace.

However, except for Nasdaq, both the S&P 500 and Dow Jones Industrial Average closed higher than the previous day.

The US yield curve also steepened sharply, promising improved interest margins for banks. This steepening also reflects investors’ disappointment over the lack of detail about the Fed’s bond-buying program.

“Be careful what you wish for,” said David Kelly, chief global market strategist of JPMorgan Asset Management. “There is a risk that overall inflation will overshoot [the central bank’s] target, and they won’t have the political will to pull in the reins before it becomes a problem.”

Maybe Next Time

Bitcoin and gold price charts meanwhile are identical.

The largest digital currency had declined to under $11,300 when Jackson Hole speech took it to over $11,600 only for bitcoin to crash harder to $11,150. Similarly, the precious metal spiked 2.3% but dropped almost 3.3%.

Today, both the assets have recovered with BTC trading near $11,500 and gold above $1,950.

When it comes to the US dollar, it managed to jump to 93.3 level but today made its way back to 92.2. Ever since the introduction of the Fed in 1913, the USD has lost over 90% of its purchasing power.

Analysts and economists were anticipating a groundbreaking campaign on inflation, but Powell delivered less than expected dovishness. According to analyst Mati Greenspan, maybe not this time, but “if the markets are demanding stronger action, the Fed will be there to serve it… perhaps next time.”

Making a case for $500,000 Bitcoin

Although not as much as expected, Fed’s speech was the symbol of central bank’s support to Wall Street, that it has been providing since the pandemic began.

However, “even before COVID-19, and despite the longest bull run in U.S. economic history, the government was spending money like a drunken sailor, cutting taxes like Crazy Eddie, and printing money like a banana republic,” wrote the Winklevoss twins in their latest blog where they make a case for $500,000 Bitcoin.

According to them, there are fundamental problems with gold, oil, and the U.S. dollar as stores of value going forward.

Meanwhile, with inflation coming, money stored in a bank will get run over, those invested in the stocks market will keep pace and money stored in gold and bitcoin will outrun where that in “bitcoin will run the fastest, overtaking gold,” which has a market cap of $9 trillion.

And if the digital currency continues on its path, going from whitepaper to over $200 billion in market cap in under a decade, the price of bitcoin could appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per bitcoin.

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Author: AnTy

Bitcoin (BTC) Jumped to $100,000 on Binance Futures

There have been several predictions that see Bitcoin hitting a six-digit figure. On Sunday, this became a reality, very briefly, thanks to an algorithm.

Bitcoin futures topped at $99,964 on Binance over the weekend.

As Binance CEO Changpeng Zhao said, this was just “another day in crypto.”

“We do have price band protection, but a user’s algo went ballistic and sent multiple orders to achieve this. We will likely have to adjust this chart a bit so that it’s readable in the future,” he said.

This might not be real this time, but some bitcoin enthusiasts are hopeful that this bull season will bring us $100,000.

The anomaly that happened on Sunday saw the price of bitcoin crashing about 12% after it surpassed $12,000. However, the digital asset is back trading above $11,000.

Meanwhile, Bitcoin September futures are trading between $11,450 to $11,550, at a premium to spot prices.

“Cash and carry with bitcoin futures now yields 25%. September futures trade at a significant premium to spot, including on CME,” noted skew. “The industry is historically crypto rich and fiat poor, it seems USD are still challenging to source and will likely drive borrowing rates higher.”

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Author: AnTy

China’s OTC Crackdown Puts Bitcoin at a Discount

Last month, there were reports of thousands of cryptocurrency over-the-counter (OTC) merchants and their clients getting affected as China froze their bank accounts to prevent illegal activity. Molly Mo, who runs marketing at a digital asset management platform Hashkey Hub said,

“The crackdown on OTC in China since last month is by far the most strict and widely affected one, is caused by USDT is widely used for money laundering, the action led by the PBOC, ministry of public security, central administration of customs, CBIRC, union pay….”

Bitcoin is also trading at lower prices at the OTC desks, at a difference of $50 to $65 than the spot exchanges.

Last week she shared on Twitter that “most” of the desks have been affected by this move with the users of a reportedly popular exchange, which has over 80% of the OTC market in China also getting their cards frozen.

Moreover, there have been reports of OTC brokers getting arrested.

The move has significant implications because OTC desks are the only fiat on-and off-ramps for China-based crypto users, especially after China’s central bank banned ICOs and cut off exchange’s direct channels for fiat deposit and withdrawals in September 2017.

In June, Sun Xiaoxiao, who ran an OTC desk and was formerly with Chinese crypto wallet startup Bixin, said Chinese police are investigating on the grounds of ‘dirty money,’ with causes including Ponzi schemes, casino businesses, and telecom frauds.

Moreover, the police have been catching up on their blockchain knowledge.

Earlier this month, Chinese crypto media channel 8BTC reported China’s Merchant Bank (CMB) saying they will “actively freeze” debit and credit cards based on “their own judgment” and assessment of risk.

Last month, the China Times reported that the Bank of China, the Agricultural Bank of China, the China Construction Bank, and the Industrial and Commercial Bank of China had been freezing accounts involved in “illegal activities.” They also said they wouldn’t freeze legal crypto transactions, but some people still claimed the same.

Last week, reports came that Zhao Dong, head of the OTC and crypto lending platform RenrenBit, was taken into a police station. Zhao also owns a small percentage, apparently less than 5%, of crypto exchange Bitfinex.

RenrenBit issued a statement in which it said Zhao offered to cooperate with the investigation, and it was unrelated to the company but his side-business.

China is “both world’s largest and most idiosyncratic crypto market,” according to Matthew Graham, CEO of Sino Global Capital.

While the Chinese government is yet again cracking down on crypto as the Supreme court and police believe digital assets are widely used in drug dealings, the stock market of the country is thriving as it hit a 1.5 trillion RMB ($213 billion), a five year high.

According to a Chinese publication, multiple reforms and increased foreign capital helped pave the way for this bull market.

But according to Dovey Wan, funding partner at Primitive Crypto, Chinese A shares rallies so hard is bad news for bitcoin. She said,

“This will further suck in retail capital into equity market (both are 80% or more retail in China), so makes the crypto market even more dull.”

On the other hand, the People’s Bank of China imposed a program in Hebei province to keep large transactions in check that would require retail (from 100,000 yuan to 300,000 yuan) and business clients (exceeding 500,000 yuan ($71,000)) to pre-report large deposits and withdrawals amidst the heightened concerns over the state of its financial system.

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Author: AnTy