Tuesday, April 9th, 2019
SHANGHAI/HONG KONG: China’s state planner wants to eliminate bitcoin mining in the country, according to a draft list of industrial activities the agency is seeking to stop in a sign of growing government pressure on the cryptocurrency sector.
China is the world’s largest market for computer hardware designed to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area.
The National Development and Reform Commission (NDRC) said on Monday it was seeking public opinions on a revised list of industries it wants to encourage, restrict or eliminate. The list was first published in 2011.
The draft for a revised list added cryptocurrency mining, including that of bitcoin, to more than 450 activities the NDRC said should be phased out as they did not adhere to relevant laws and regulations, were unsafe, wasted resources or polluted the environment.
It did not stipulate a target date or plan for how to eliminate bitcoin mining, meaning that such activities should be phased out immediately, the document said. The public has until May 7 to comment on the draft.
State-owned newspaper Securities Times said today the draft list “distinctly reflects the attitude of the country’s industrial policy” towards the cryptocurrency industry.
“The NDRC’s move is in line overall with China’s desire to control different layers of the rapidly growing crypto industry, and does not yet signal a major shift in policy,” said Jehan Chu, managing partner at blockchain investment firm Kenetic.
“I believe China simply wants to ‘reboot’ the crypto industry into one that they have oversight on, the same approach they took with the internet.”
Other bitcoin traders said they were not surprised by the government’s move.
“Bitcoin mining wastes a lot of electricity,” said one Chinese bitcoin trader who declined to be named due to the sensitivity of the situation.
Last week, the price of bitcoin soared nearly 20% in its best day since the height of the 2017 bubble, and breaking US$5,000 for the first time since the middle of November, although analysts and traders admitted they were puzzled by the surge.
Bitcoin, which accounts for around half of the cryptocurrency market, was down by around 1.4% today, while other major coins such as ethereum and Ripple’s XRP also fell by similar amounts.
Traders in London said it was unclear how much the Chinese move was weighing on the market.
PETALING JAYA: MNC Wireless Bhd has proposed a renounceable rights issue of new irredeemable convertible preference shares (ICPS) together with free detachable warrants on the basis of 50 ICPS together with one free warrant for every 10 existing shares to raise a minimum of RM11 million.
The exercise involves the issuance of up to 3.77 billion ICPS together with up to 75.38 million free warrants B.
The gross proceeds to be raised from the exercise are intended to be utilised for the upgrading of the group’s bulk short messaging service (SMS) messaging platform, upgrading of the group’s premium mobile content platform, development of an online property management platform, acquisition and/or investments in other complementary businesses and/or assets.
MNC Wireless opined that the proposed rights issue of ICPS with warrants is the most suitable means of fund raising for the company as it will not have an immediate dilution effect on the group’s earnings per share (EPS) as the ICPS are expected to be converted over the conversion period as opposed to a fund raising exercise via rights issue of ordinary shares which will have an immediate upfront impact on the group’s EPS.
It also enables the company to raise the requisite funds without incurring additional interest expense from bank borrowings, thereby minimising any potential cash outflow in respect of interest servicing costs.
The exercise of the warrants B in the future will allow the company to obtain additional funds without incurring additional interest expenses from borrowings. Should the company increase its borrowings in the future, the exercise of warrants B will increase shareholders’ funds and lower the company’s gearing, thereby providing the company with flexibility in terms of the options available to meet its funding requirements.
BRUSSELS, April 9 — European companies should have the same rights in China as Chinese firms in Europe, European Commission head Jean Claude Juncker said today as an unusually tense EU-China summit kicked off in Brussels. The EU-China summit every…
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LONDON, April 9 — British department store chain Debenhams has been taken over by lenders after falling into administration, it said today, amid tough times in the retail sector. High street stalwart Debenhams, whose history dates back to…
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KUALA LUMPUR, April 9 — A new 633 acre self-sustainable township was launched today in Dengkil by award-winning property developers LBS Bina Group Berhad (LBS). The new development, named [email protected], has already sold out its first and second…
LONDON, April 9 — The Australian and Canadian dollars rose today, aided by a surge in oil prices to five-month highs that lifted most commodity-linked currencies. Oil prices have rallied on expectations that global supplies would tighten due to…