News from around the World of Cryptocurrency and Blockchain in June, 2019
The month of June 2019 just ended and with the month’s end, there has been some rapid and transformative changes in various countries in the Blockchain ecosystem. So let’s check out what has happened in some of the top destinations for blockchain in the world.
China has taken giant strides in the last two decades in technology and they have almost added more warmth in their relationship with cryptocurrency and blockchain in the past few years.
But recently after encountering a lot of botched ICO’s that happened in Singapore, China has taken a hardline stand against the ICO’s. They are imposing an immediate restriction on the crypto trading by banning Bitcoin, ICOs and crypto exchanges. This might be a terrible news for the miners as almost 70% of the mining of the cryptocurrency already occurred in the South Asian nation.
There was a continuous surge in the cryptocurrency mining in China because of a very good Internet speed and continuous supply of electricity. The Sichuan Province has been the front-line player in China for the cryptocurrency mining.
These latest amendments will hurt some of the big names in the crypto mining like Bitmain, Asia’s most celebrated miner. The government’s regressive stance is attributable to a lot of tax evasion and other environmental concerns like over consumption of electricity. Perhaps, the Kyoto Protocols are hurting the Chinese Bitcoin & Blockchain Aspirations.
Russia, unlike its close counterpart China, has taken a laxed stance towards the use of Bitcoin in the country. Meaning, they have not completely banned the use of Bitcoin, but its use as a mode of payment has been stopped with immediate effect. But at the parliament, a new bill is about to be introduced termed as the Digital Financial Asset Bill. As it has been speculated, that this bill will legalize the use of cryptocurrency for payments.
Miners enjoy the regional advantage while mining cryptocurrency in Russia. One can give due credit to the climate, which is pretty cold and the availability of amenities. In the mining, you need a super-fast internet speed and cool climate, and both are readily available in Russia.
But the passage of the Digital Financial Asset Bill will not be giving immunity to the crypto traders as they will be possibly facing huge penal charges in case of default. But Russian ministry has also clarified that holding the cryptocurrency acquired from outside the country will not be taken as illegal.
Cryptocurrency mining puts a lot of pressure on the electricity grid, as a result, the Iranian government is not ready to take the onus. They Iranian Ministry of Power has been upfront about is choice to impose a permanent ban on the cryptocurrency mining. After the mining activities in the oil rich country, the electricity consumption has increased by 7%. In a move to discourage the mining, the Ministry of Power has taken a stance to cut electricity in those areas for extended time in the day that experiences the highest mining incidents. But the cryptocurrency mining is also empowering the oil nation, as a result, the Ministry of Power has also thought of imposing new rates in the electricity tariff in the core-cryptocurrency mining areas. But everything will be back to normalcy only when the new bill that will pass new tariff laws for electricity will be rolled.
Amid all the negatives, there is something favorable going in the blockchain ecosystem in Canada. The North American nation has classified bitcoin as a commodity and the miners can use it to make the payments only after they are paying the taxes on the income via mining and other crypto transfers. Whether the Canadian citizens are receiving payments via bitcoin or they are keeping bitcoin as capital gains, they will have to incur the taxes imposed on the currency usage. Mining will also be taxed in a different manner if it is used as a business. Hydro-Quebec, a major electricity provider in the Quebec Province has lifted or withdrawn the moratorium on the sale of the power to all the business indulged in cryptocurrency mining.
With such a stance, there has been quick growth in the application of companies seeking the power supply from Hydro-Quebec. In the year 2018, Hydro-Quebec has passed specific rules that give them the authority to cut power as load-shedding during busy mining hours. As a result of that, there are auctions going in Canada to aid the electricity consumption during busy business hours of mining.
The US Commodity Futures Trading Commission classified Bitcoin as a commodity back in 2015 and they continue to do so at the present. But not every place is the US is as co-operative as others in the country. Plattsburg in New York has completely banned the use of cryptocurrency and mining. This is primarily because of excessive use of the electricity in the region and excessive load imposed on the electricity department.
Cryptocurrency is going global across all nations and with the likes of India, China and Japan using it could shape the future for the better. But in India, still giant strides are required to make Blockchain and Bitcoin go mainstream. Stay tuned to get more updates from the world of crypto sphere.