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Cryptocurrency

SBI Holdings to Launch Japan’s First Crypto Fund That Will Invest In XRP, Bitcoin and Ether

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SBI Holdings doesn’t rule out launching more crypto funds if there’s enough demand

Financial giant SBI Holdings is planning to launch Japan’s first digital asset fund by December, Bloomberg report.

The new investment vehicle will have exposure to some major cryptocurrencies, including Ripple-affiliated XRP.

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Morningstar Japan president Tomoya Asakura told the outlet that the fund will showcase the usefulness of diversification:

I want people to hold it together with other assets and experience firsthand how useful it can be for diversifying portfolios.

Asakura says that SBI Holdings will swiftly roll out another crypto fund if the first one ends up being a success. The company might also be considering launching a separate investment vehicle for institutional investors.

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SBI Holdings is not new to crypto. In early January 2016, the Tokyo-based financial conglomerate forged a partnership with prominent cryptocurrency company Ripple.

Yet, it took the company more than four years to set the fund in motion due to stringent regulations in Japan.

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What changes in the cryptocurrency market with China’s new rules

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The Chinese government started a new wave of repression of cryptocurrencies in the country, continuing the bans it has already imposed on the sector in the past, in 2013, 2017 and May 2021.

The People’s Bank of China, together with the country’s main financial regulators, released on Friday (24) a document called “Notice on the Prevention and Elimination of Risks in Virtual Currency Transactions” in which it announces the tightening of measures to repress negotiations of Bitcoin and other cryptocurrencies in the Asian country.

The point that draws the most attention in the document is a new understanding that any person or company that facilitates the negotiation of bitcoin and other cryptocurrencies in the country is breaking the law.

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The text states that “the provision of services to foreign exchanges to Chinese residents over the internet is an illegal financial activity” and those who engage in this activity will be investigated in accordance with the law.

The Central Bank has explicitly said that cryptocurrencies such as Bitcoin, Ethereum (ETH) and Tether (USDT) “are not legal, should not and cannot be used as currency in the market”, stating that all “commercial activity related to virtual currency is illegal” .

The agency once again reinforced a request it had already made in June for the country’s financial institutions to help fight cryptocurrencies, preventing their clients from making transactions to foreign exchanges and over-the-counter (OTC) markets.

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China attributed the tightening of measures to the rise in the popularity of cryptocurrencies in the country, which “seriously endangers the security of people’s property” and “grows criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes and money laundering”.

At this pace, the document indicates that ordinary people who lose money in investing in cryptocurrencies will no longer be protected by law.

Keeping an eye on exchanges

Chinese journalist Colin Wu, one of the biggest references in the coverage of the cryptocurrency market in the country, told the Bitcoin Portal that it is still difficult to see in practice what changes in the cryptocurrency market with the new wave of repression in China.

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“We have to wait, it’s hard to say now. The expectation is to find out how big exchanges like Huobi and OKEx will tackle this, as they still operate OTC tables here. They have a strong government relationship and will make a rational choice”, he explained.

He pointed out that it is already possible to identify that most Chinese companies operating in the cryptoactive sector are looking for friendlier jurisdictions to base their operations on, such as Singapore.

“Singapore is open and tolerant of cryptocurrencies, not just Chinese companies, but many international companies in the area are also moving there, such as 3ac,” explained Wu. “Another reason is that Singapore’s culture is similar to China.”

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The government’s hardening has already been able to scare some market participants. The world’s largest Ethereum mining pool, the Spark Pool, announced today that it will no longer provide its services to users in mainland China as a way of “complying with the latest industry regulatory policies.”

Second Wu, the popular NBMiner mining software also confirmed that it will no longer offer technical support services to Chinese customers.

Attack on miners intensifies

At the same time as the Central Bank issued the new restrictions, China’s state planning body, the NDRC, also issued a “Virtual Currency Mining Rectification Notice” that focuses on combating mining.

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The text orders electricity providers to stop serving miners through hotlines and increase the cost of energy to $0.05 per kilowatt-hour for identified miners.

The NDRC also urges local authorities to increase the search for illegal mining farms and generally crack down on activities in their territories as a way of phasing out the industry.

According to Colin Wu, larger miners are likely to continue the trend started during the May crackdowns and leave China to operate in other countries such as the United States.

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“Meanwhile, small miners must find some factories to mine secretly. If they cannot find a safe place, they will probably have to sell their machines,” he told the report.

Bitcoin remains resilient in the long run

Bitcoin prices were not immune to this Friday’s negative news coming out of China. According to CoinMarketCap, the currency has devalued 3.6% in the last 24 hours, trading at US$42,220.

Although it is already common for the price of bitcoin to react negatively to the Chinese government’s statements, the drop tends to be a passing event, with the cryptoactive being able to recoup its losses in the long run.

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According to data from Kraken disclosed by analyst Pete Humiston, bitcoin typically appreciates an average of 53% about 90 days after the FUD news — fear, uncertainty and doubt — departs from China.

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Netflix Eyes Mysterious Disappearance of $190,000,000 After Death of Crypto Exchange CEO

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One of the biggest mysteries in the cryptocurrency sector is getting fresh scrutiny in a Netflix documentary.

The online video streaming giant says in a tweet that it will air an investigative documentary titled “Trust No One: The Hunt for the Crypto King”.

The documentary focuses on Gerald Cotten, the founder and CEO of QuadrigaCX, Canada’s biggest cryptocurrency exchange until two years ago.

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Cotten, a Canadian, died in December of 2018 while on a honeymoon in India, but his death went unannounced until January 2019.

The QuadrigaCX CEO was allegedly the only one with the private keys required to access the crypto assets in the exchange’s custody, believed to be worth $145 million (C $190 million) at the time of his death.

Netflix says the documentary will air starting next year.

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“TRUST NO ONE: THE HUNT FOR THE CRYPTO KING

Follow a group of investors turned sleuths as they try to unlock the suspicious death of cryptocurrency multimillionaire Gerry Cotten and the missing $250 million they believe he stole from them. Premieres in 2022″

Cotten’s sudden death in a foreign land and the disappearance of millions of dollars worth of crypto assets led to conspiracy theories that included suspicions that Cotten might have faked his death.

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report by Canadian Broadcasting Corporation in May quoted Cotten’s widow denying the theory, saying through her lawyer that “she was with Mr. Cotten at the time of his death and he is most certainly dead.”

QuadrigaCX entered bankruptcy proceedings soon after Cotten’s death, and by May, the amount recovered to pay the roughly 76,000 creditors totaled $36,357,894 (C $46 million).

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“Rich Dad Poor Dad” Author Believes He Knows Real Reason of New Chinese Crypto Ban

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Famous real-estate investor and author of the best-selling book on financial literacy “Rich Dad, Poor Dad” Robert Kiyosaki has taken to Twitter to suggest the actual reason why China has announced another ban on Bitcoin and all other cryptocurrencies.

This ban is taking place after China started to clamp down on crypto miners earlier this year.

A new Chinese ban hits the crypto market

Apart from investing in real-estate, Robert Kiyosaki also prefers to hedge his funds against inflation by betting on gold, silver and Bitcoin. Last year, he expected an upcoming collapse of the USD and shared his thoughts on benefits of Bitcoin and gold, silver in the future with the army of his Twitter followers.

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Now, he has commented on the new documents published by the Chinese Central Bank (PBOC). These documents announcing operations with all cryptocurrencies illegal were issued at the start of September but were made public only on Friday.

The announcement of the PBOC pushed the entire crypto market in the red, forcing Bitcoin to drop to $41,000 and making Ethereum go below $3,000.

This was the second major blow to the crypto market this week – the first one came also from China, when the second largest housing developer China Evergrande Group was unable to pay out its 2-trillion-yuan debt to shareholders and saw the price of its stocks go down.

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“China announced new crypto ban. What does it mean?”

Kiyosaki reckons that by announcing crypto transactions (and therefore, all crypto-related businesses) illegal in the country, the Chinese government together with the PBOC are clearing the way for launching their own CBDC known as DCEP (digital currency electronic payment) or digital yuan.

The US Fed Reserve has also shown interest in CBDC recently and began studying this opportunity. If the Fed launches the digital USD (the “Fed coin”), the American government will turn into a fully centralized one, like in China.

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Previously, some on crypto Twitter assumed that China will use CBDC for tightening control over the bank accounts of Chinese people and will have full data on their income and spending, etc.

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