Read in the Digest
- BeePool to shut down ETH services, Bitmain to halt services, and Alibaba (NYSE:BABA) bans sales for miners.
- Polygon overtakes Ethereum in daily active addresses
- Kraken hit with $1.25 million fine, “we don’t need crypto regulation” – Musk
- Switzerland’s regulators approve first crypto assets fund
BeePool to Shut Down ETH Services, Bitmain to Halt Services, and Alibaba Bans Sale for Miners
The People’s Bank of China (PBOC) toughened its stance on crypto, leading to the halt of many crypto services in the county. Following the anti-crypto stance of China, BeePool, the fourth-largest Ethereum mining operation, has announced that it will shut down its services “in response to the latest regulatory policies.”
The Chinese crackdown continues into the sale of mining devices, forcing the leading crypto mining machine manufacturer, Bitmain, to halt device sales in China. While Bitmain hasn’t released an official statement, SparkPool, the second-largest contributor to the Ethereum network, has similarly announced that it will shut its services by the end of September.
As China continues its crusade, leading eCommerce platform Alibaba has banned shop owners from selling mining devices and cryptocurrencies. In addition, store owners could see their accounts frozen or deactivated if they sell mining devices after October 15th.
Flipsider:
- While China has continued its crackdown on crypto mining, Miami’s mayor has pitched accessing nuclear energy to bitcoin miners.
- In addition, Bitmain will be moving its production out of China to other countries.
Why You Should Care
The crackdown on crypto is currently having adverse effects on the crypto industry. However, with the mining pools that controlled most of the Bitcoin and Ethereum network migrating to other countries, the crypto market is expected to become more decentralized.
Polygon Overtakes Ethereum in Daily Active Addresses
Polygon, the scaling solution built on top of the Ethereum network, has hit a significant milestone. For the first time since its launch in 2017, the number of daily active addresses has exceeded Ethereum.
The number of daily active Polygon (MATIC) addresses now stands at 351,000, with Ethereum’s layer 1 solution standing at 326,000.
The co-founder of Ethereum and Polygon Network, Mihailo Bjelic, shared the news on Twitter (NYSE:TWTR), where he wrote;
Another huge milestone for @0xPolygon! We eclipsed Ethereum L1 in daily active addresses for the first time!This is just the beginning. We are working round the clock to improve our tech, strengthen our ecosystem and increase adoption.Let's bring the world to Ethereum! pic.twitter.com/K4sAF1y3LT— Mihailo Bjelic (@MihailoBjelic) September 29, 2021
The multi-chain solution of the Polygon Network has been instrumental to its growth, as it greatly reduced gas fees and increased transaction speeds, while maintaining network security.
Flipsider:
- Despite the growth of the Polygon network, MATIC has struggled to make gains, dropping from a high of $1.79 to trade at $1.106.
The 30 days price chart for Polygon (MATIC). Source: Tradingview
Why You Should Care
The Polygon Network is one of the most promising crypto projects. The layer 2 scaling solutions of Polygon have already been integrated by several projects, which have all vaunted their efficiency.
Kraken Hit With $1.25 Million Fine, “We Don’t Need Crypto Regulation” – Musk
As regulatory watchdogs intensify their gazes, we have seen more clashes with crypto exchanges than ever before. Now on the receiving end is the United States-based cryptocurrency exchange and bank, Kraken.
The United States Commodity Futures Trading Commission (CFTC) has slammed a $1.25 million civil penalty on Kraken for allegedly offering marginal retail commodity transactions in digital assets.
Flipsider:
- While regulatory agencies seek more control over the crypto industry, Tesla (NASDAQ:TSLA) chief and crypto enthusiast Elon Musk has said that the U.S. government should avoid regulating crypto.
- When asked about crypto regulation at the Code Conference, Musk replied, “I would say, ‘do nothing.”
Why You Should Care
These actions form part of the broader efforts by regulatory watchdogs to protect customers. However, it may limit the exposure people have to cryptocurrencies.
Switzerland’s Regulators Approve First Crypto Assets Fund.
The Swiss Financial Market Supervisory Authority (FINMA) has approved the first crypto investment fund for the country. The approval comes as the regulatory watchdog seeks to “facilitate serious innovation.”
The crypto fund, Crypto Market Index Fund, will be the first cryptocurrency-oriented investment vehicle to operate with the proper licensing in Switzerland. According to FINMA, it will be found under “other funds or alternative investments.”
Because of the peculiar risks involved with crypto, FINMA stated that it had tied the approval to specific requirements. The fund may invest only in established assets with large trading volumes.
Flipsider:
- Investments in Crypto Market Index Funds must be made through established counterparties.
Why You Should Care
Switzerland is among the leading adopters of cryptocurrencies. In 2020, Switzerland’s ‘Canton of Zug’ enabled locals to pay their taxes in Bitcoin and Ethereum.
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