Chinese police expanded to monitor international cryptocurrency activity

This falls in line with the efforts of Chinese government to provide regulation and security
01 March 2018   174

It is reported today that China Police Force from recently includes a special unit for monitoring foreign virtual currency operations along with domestic platforms that have moved out of China. This and numerous other measures (ICO ban, blockchain patents, own cryptocurrency, decentralization of crypto trading,etc.) all aim to counter illegal financial activity like money laundering, pyramid schemes and investment fraud.

The situation came to this because after all the anti-crypto and anti-ICO measures, organizers and exchanges have decided to move overseas, outside of the jurisdiction of Chinese government. Some domestic enterprises and individuals evaded the regulation and set up exchanges outside China, moving their servers offshore or registering companies overseas.

Yet, China's National Internet Finance Association under Central Bank reported that such transition to foreign platforms didn't stop domestic investors from accessing them. This poses a formidable risk associated with global digital currency activities, especially that of being involved in pyramid schemes, as reported earlier by Chinese Ministry of Public Security. The most effective way of countering such behaviour is to be able to freeze trading accounts by means of banks.

Largest mining farm to be built in the UK

The well-known UK tech company Bladetec is building the first large Bitcoin mining farm in Europe
20 March 2018   177

Bladetec had already got an experience in IT support for NATO and the Ministry of Defence of the UK in the past. Today its idea is funded by investors in a limited company which is protected by UK law.

The facility - Third Bladetec Bitcoin Mining Company (TBBMC), situated on the Southeast of the country, is going to cover 3,500 square feet in three different places: in London, Suffolk and Surrey.

Today the company is raising £10 million from investors for building and operating the farm for up 2 years. The farm will become global and significant, also it is supposed to be introduced in the world`s top 25 and produce considerable return for shareholders (as a result of its dominant position).

The minimum investment to TBBMC project set by the company is £ 5,000 from each applicant. The project allows the capital growth up to even 45 % within a period of 2-3 years. The returns for the shareholders at that stage would be based on the Bitcoins sales`proceeds and the ASIC machines. If the price of Bitcoin does drop by 40 %, an investor may lose 22 % of his capital.

The company declared that it is going to mine 1,280 bitcoins within a period of two years. Nowadays it's difficult to predict how much those Bitcoins may be worth in two years. According to current prices, they will be valued at £ 7,8 million. But the situation may probably change before 2021. As for the raised funds, they would mostly be spent on the energy costs, despite the low energy bills' agreement between Bladetec company and the intended wind farm.

Bitcoin mining is more popular in the countries where the weather is cold (such as Iceland and China). The government of Iceland can implement a tax on mining because of the energy consumption. Chinese authorities insists on the ending of the cryptocurrency trading and mining in the country.