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Apple’s Market Capitalization Shrinks by $200 Billion Over Two Days

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The tech giant Apple has seen a significant reduction of $200 billion in its market value within the last 48 hours, partly attributed to China’s decision to prohibit its government from using iPhones. On Thursday, Apple’s shares experienced a notable 3.4% decline, marking the company’s most substantial daily drop in over a month and positioning it as one of the weakest performers in the Dow Jones Industrial Average.

China stands as Apple’s largest overseas market, with Chinese sales accounting for approximately one-fifth of the company’s total revenue last year, providing context to the magnitude of this loss. China’s motivation behind this ban appears to be a combination of national security and economic concerns, as suggested by Paul Haenle, a former China director on the National Security Council under former Presidents George W. Bush and Barack Obama.

Trouble Brewing for Apple: China’s Potential ‘Bad News’

The news had a ripple effect on the tech sector, with the Nasdaq Composite slipping by around 1% on Thursday, and the semiconductor industry witnessing a drop of over 2%. Given that the majority of Apple’s products are manufactured in China, the company is a significant contributor to job creation in the country through its contract manufacturers and suppliers. Apple holds a dominant position in the Chinese market, particularly in the smartphone sector, and as a result, it is anticipated that this ban will result in a staggering $200 billion loss in revenue for the company.

Crypto-Linked Corruption Leads to Life Imprisonment of Former Official in China

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Involvement in facilitating cryptocurrency mining operations has led to a life imprisonment sentence for Yi Xiao, a former member of the Chinese Communist Party (CCP), as decreed by a Chinese court in response to corruption charges. Yi Xiao, who previously held the position of vice chairman within the Jiangxi provincial committee of the People’s Political Consultative Conference, has also been found guilty of abusing his power. The court’s verdict stemmed from his acceptance of over 125 million yuan ($17.1 million) in bribes spanning from 2008 to 2021.

Additionally, while serving as the party secretary of Fuzhou City, Xiao provided assistance to companies engaged in digital asset mining, a prohibited activity in China. The court stated that these actions resulted in substantial losses to public assets and the interests of the nation and its people. Consequently, Xiao has been sentenced to life imprisonment, along with a revocation of all his political rights and the confiscation of his personal assets.

China’s Evolving Stance on Cryptocurrency

China’s historical relationship with digital asset’s has been marked by turbulence. As far back as 2013, the nation initiated measures to distance itself from crypto, prohibiting banks from engaging in crypto transactions. Subsequently, in 2017, China extended its restrictions by banning Initial Coin Offerings (ICOs), a move intended to bolster the national currency, the yuan, and curtail the illicit outflow of funds.

By 2019, the focus shifted to Bitcoin (BTC) mining, with the National Development and Reform Commission (NDRC) designating BTC mining as “undesirable.” This signaled the government’s apprehensions about the practice. The year 2020 witnessed an intensified crackdown on the burgeoning crypto sector, as the People’s Bank of China (PBoC) revealed its intent to block more than 100 foreign websites providing crypto exchange services.

Nevertheless, it wasn’t until 2021 that China’s ban on crypto mining became fully operative. Prior to this, provinces such as Inner Mongolia, Xinjiang, and Sichuan had functioned as significant Bitcoin (BTC) mining centers, collectively contributing to nearly half of the global BTC mining power. The definitive blow materialized in September 2021 when the country chose to enact a comprehensive prohibition on crypto mining activities.

Digital Yuan’s Cross-Border Soar: Hong Kong Trials Galore

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China’s central bank digital currency, known as the digital yuan, is witnessing a growing adoption and an increase in use cases. However, it is important to note that despite this expansion, the digital yuan only accounts for a mere 0.16% of China’s overall monetary supply.

The country’s central bank governor, Yi Gang, reported that the digital yuan has facilitated transactions worth nearly $250 billion during the one-and-a-half-year period since its pilot launch. As of the end of June, the total value of transactions reached an impressive 1.8 trillion yuan.

During this time, approximately 950 million transactions were conducted through around 120 million digital yuan wallets, resulting in an average transaction amount of roughly $260.

Despite the significant progress, it is evident that there is still considerable room for growth. By the end of June, only $2.3 billion, equivalent to 16.5 billion digital yuan, was in circulation, accounting for just 0.16% of China’s monetary supply. This data was sourced from a July 19 report by Reuters.

The digital yuan’s adoption is particularly modest when compared to China’s vast population of 1.4 billion. While there have been a few trials in Hong Kong, the primary usage of the digital yuan remains within the domestic retail payments landscape.

In an effort to further enhance cross-border applications, the Bank of China Hong Kong initiated a trial of a cross-border payment scheme for its customers at select retail stores in Hong Kong. This move marks the third cross-border trial of the central bank digital currency in Hong Kong, as reported by the South China Morning Post on July 18.

Lagging Behind: Digital Yuan vs. Public Blockchains

Last year, the BOCHK ran a program encouraging customers to set up BOC e-CNY wallets, rewarding them with $14 (100 yuan) for use at the Hong Kong supermarket chain U Select.

To expand the potential use cases of the digital yuan, the central bank integrated smart contract functionality in January. However, despite these developments, the digital yuan’s value processed in transactions, amounting to $250 billion, represents an impressive 70% increase from the figure cited in August 2022.

Nonetheless, it is essential to recognize that the asset’s transaction value still lags significantly behind that of major public blockchains. For instance, in 2022, Bitcoin alone facilitated transactions worth $8.2 trillion, as reported by various sources.

In conclusion, while the asset’s adoption and use cases continue to grow, there is still a long way to go before it becomes a substantial part of China’s monetary landscape, especially when compared to other cryptocurrencies and traditional payment methods.

Cryptocurrency and Telegram Fueling Drug Crimes, Emerging Trends in China

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Cryptocurrency is favored more for transactions in peddling narcotics in China, says the police.

During the late hours of the night, an unfamiliar dark figure stealthily infiltrated the corridor of a residential community. Moving cautiously, the shadow extended its hand, feeling around until it found a concealed spot to secure a plastic package containing both “stamps” and marijuana products using a magnet. Approximately a month later, another shadow meticulously retrieved the plastic bag. Thus, in a realm of secrecy where nobody was aware, an illicit drug transaction was clandestinely concluded.

Drug addicts and dealers established communication through foreign social platforms. Dealers strategically concealed their merchandise beforehand, while addicts autonomously located and retrieved the goods based on provided instructions. Subsequently, transactions were conducted using cryptocurrency.

On the eve of “6.26 International Anti-Drug Day,” the Shanghai police disclosed the successful dismantling of a criminal gang involved in the sale of new drugs, as well as the cultivation, processing, and distribution of marijuana.

The underlying factor, in this case, is the prevalence of internet-based drug trafficking, where no direct contact is involved throughout the entire process. This has emerged as the primary modus operandi in the contemporary drug trade and presents a crucial challenge that needs to be addressed in drug control efforts.

Dark Web and Cryptocurrency Payments

The discovery of this case highlights the importance of public vigilance towards emerging methods of drug-related crimes, such as online drug trafficking and “buried bag” transactions.

In recent years, there has been a noticeable surge in illicit activities involving the production and distribution of drugs through online channels. This underground industry is rapidly developing, utilizing overseas social software for communication, engaging in “buying” transactions and making payments through cryptocurrency. As a result, a comprehensive network-based drug trade ecosystem is taking form.

Regarding the prevailing trends, overseas social platforms and the ‘dark web’ are assuming an increasingly significant role in various aspects of drug-related offenses. They have transformed into breeding grounds for the proliferation and expansion of drug crimes. Section Chief Li from the Anti-Drug Division of Shanghai Public Security Bureau emphasized that law enforcement agencies are leveraging advanced network investigation technologies, devising novel collaborative models among multiple police forces, conducting research, and exploring technical and tactical strategies to combat drug-related crimes on the internet. Their goal is to continually enhance the effectiveness of countermeasures against online drug crimes.

Within the realm of drug fund circulation, certain drug dealers employ multiple intermediary steps to conceal transaction details, thereby both obscuring the truth of their dealings and presenting challenges for law enforcement agencies in tracing the flow of drug funds. This case exemplifies the emerging trend of utilizing cryptocurrency as a means to facilitate drug fund payments, further complicating the tracking process for the police.

China’s National Television Broadcasts Crypto: Potential Bullish Trigger For Market Recovery?

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China Central Television (CCTV), the national television broadcaster of the Asian giant, made headlines by featuring crypto in its recent broadcast. The announcement, revealed by Changpeng ‘CZ’ Zhao, CEO of Binance, has sparked excitement within the industry, considering the historical significance of such broadcasts in triggering bull runs.

CZ emphasized the potential impact of this bullish event on the cryptocurrency ecosystem’s current state while clarifying that past performance does not guarantee future outcomes. The ecosystem may undergo positive changes if the event takes place. Its potential benefits are catalyzing market recovery and breathing new life into a market that has recently experienced volatility.

China has a complex relationship with digital currencies, with a rich history of involvement in their evolution. Over the past decade, the country has oscillated between support and skepticism, culminating in a ban on all crypto transactions in 2021.

This ban sent shockwaves throughout the crypto ecosystem, with the People’s Bank of China (PBoC) forbidding financial institutions from engaging in any digital currency-related activities. Additionally, it prompted the departure of Bitcoin miners from the country, leading to a significant drop in the global BTC mining hashrate.

Crypto World Awaits China’s Broadcast Impact

Since news of the broadcast spread, commentators have offered intriguing speculations about its implications. Many believe that it signals China’s renewed interest in embracing the technology under a regulated environment, suggesting the possibility of final regulations for the industry.

Given China’s enormous market potential and influence on the ecosystem, a revival of its interest in cryptocurrencies could have far-reaching consequences for all stakeholders involved. The broadcast by CCTV may be seen as an important milestone in this evolving relationship, potentially paving the way for a more controlled and regulated approach to digital currencies in China.

China’s national television broadcaster, China Central Television (CCTV), has focused on crypto and got people talking. The broadcast triggered interest and discussion. Changpeng ‘CZ’ Zhao thrilled the industry, given the historical relevance of such broadcasts in initiating bullish movements.

CZ highlighted how this festive event could potentially impact the current state of the crypto ecosystem. He confirmed that future results cannot be assured. If the event occurs, the ecosystem might experience positive changes.

Meanwhile, once a prominent crypto hub, Hong Kong is trying to regain its status and ease regulations for retail investors to trade like Bitcoin and Ethereum (ETH). This move is viewed as a subtle experiment for mainland China to gauge whether it can effectively regulate crypto service providers.

Hong Kong’s recent actions to reposition itself as a crypto-friendly jurisdiction are closely watched as a potential model for mainland China. Hong Kong aims to attract retail investors and stimulate trading by relaxing regulations. The success of this experiment could provide valuable insights for China in managing the affairs of crypto service providers through thoughtful and effective regulations

Related Reading: | Bitcoin Sell-Side Risk Ratio Approaching All-Time Lows, Signaling Potential Volatility

Beijing Removes Bitcoin Content From Douyin App Shortly After Its Debut

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Bitcoin search results were abruptly removed from the Chinese app called Douyin which recently displayed the token’s price on its platform. The news sparked hopes of a shift in Beijing’s stance on the digital asset ecosystem.

According to the latest update shared by Wu Blockchain, the content of Bitcoin and other tokens in Douyin can no longer be displayed.

The current search result is “According to relevant national regulations, unofficial virtual currencies do not have the same legal status as legal tender. Please invest carefully.”

Douyin is produced by ByteDance the same firm that owns TikTok and has become an influential consumer tool for the Chinese people.

Almost 730 million people gained access to this short-video platform in China by the end of 2022.

Therefore the introduction of Bitcoin in China’s tightly regulated social media was seen as a breath of fresh air.

It is worthwhile to recall on Jan. 25, there were numerous reports claiming that the Chinese tax authorities were looking into the country’s “crypto whales” money in order to tax it.

According to local sources, a local tax office had been in contact with an anonymous large-scale investor since early 2022, requesting an audit of its personal income tax.

It was also revealed that the tax inspectors are looking to apply the basic Chinese income tax rate to their earnings.

Although Beijing may not publicly endorse crypto assets, there is speculation that it is aiding its special administrative region Hong Kong in becoming a major global hub for the industry.

According to a Bloomberg report, Hong Kong has taken a much more liberated approach and has hosted various crypto events in the city which was heavily frequented by officials from China’s Liaison Office and other related entities.

During these events, these gov execs monitored progress, requested updates, and occasionally followed up with calls.

The presence of these Chinese officials led to speculation that the nation covertly harbor desires to investigate the potential of digital assets and a view of the city’s laissez-faire attitude as an ideal setting for testing and experimenting.

Meanwhile, Bitcoin has continued to display bullish signals amidst its historic price surge.

Bitcoin’s Value Taps 10-Month High

As reported by TronWeekly, more Bitcoins are now in the bags of investors who are keen on keeping their bags unmoved for the long term. This trend was last seen from January 2021 through April 2021 when BTC created history and surpassed $64k.

Not long ago, Bitcoin surged above $30,000 for the first time since June 2022, indicating that the largest cryptocurrency by market capitalization is about to break out.

Is Binance A Chinese Company? Here’s What CZ Has To Say

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Binance’s Chief Executive Officer Changpeng “CZ” Zhao has responded to claims over being a Chinese firm. CZ penned down a detailed post offering a rebuttal to the allegations. The top executive criticized the media’s efforts to malign its reputation by portraying it as a company with connections to China.

One of the many strengths that our employees at Binance must possess is thick skin. After all, this industry is the subject of a lot of negative sentiment (much of it is unwarranted, but it’s the reality right now). In recent months, our thick skin has been tested by a noticeable increase in attacks on our company’s reputation.

He lamented that people would still insist on calling it a “Chinese company,” despite establishing itself as a global firm with diverse employee profiles similar to that of FTX, and Crypto.com.

Zhao also took a critical note of the negative campaigns orchestrated by crypto exchanges and projects to target competitors and said these types of attacks are becoming more sophisticated.

“And while it is tempting to launch counter-attacks on the industry’s bad actors who engage in these activities, we will not debase ourselves nor abandon our values,” he added.

It is worth recalling that a self-proclaimed whistleblower CryptoLeaks recently published a report alleging Avalanche labs for exploiting litigation to cast doubt on rival blockchain projects. Binance too was served a legal notice at the behest of Ava labs, the report alleged.

“Binance Was Never Incorporated In China”

While Binance has at times shifted its corporate headquarters around the globe, CZ has maintained that the exchange was never incorporated in China.

He also stated that the firm has subsidiaries spread across the globe, including France, Spain, Italy, UAE, and Bahrain [to name a few].

“But we don’t have any legal entities in China, and we do not have plans to.”

According to CZ, it is incorrect to presume that the exchange is “secretly in the pocket of the Chinese government” simply because he is of Chinese ancestry and there are other ethnically Chinese employees.

He referred to Binance as a simple target for Western governments, as well as oppositional media and special interest groups.

Nearly 12,000 Bitcoin and crypto akin Weibo, Baidu accounts revoked by China regulator

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It is well known that China has ruthlessly destroyed major Bitcoin mining powerhouses and implemented a comprehensive ban on the industry.

China emerged as one of the first nations to embrace the business, although the majority of the world’s population knew very little about the crypto-verse. Now that every country seems to be moving into the sector, China decided to outlaw all things cryptocurrency.

Despite this, a number of Chinese locals persisted in expressing interest in the market. But it was obvious that China wanted to minimize all things crypto-related. As a result, the Cyberspace Administration of China decided the decision to delete nearly 12,000 social media profiles associated with cryptocurrencies.

Source: TWJ

The Chinese government has made a lot of noise about its position in the sector. The bear market reinforced this idea as Bitcoin fell below the $20K barrier.

But even before the apex of the bear market, China’s National Cyberspace Administration had begun to take safeguards. The regulator then addressed false information that was being spread on social media to promote cryptocurrency.

It was revealed that the same reason led to the closure of over 12,000 Weibo and Baidu accounts. Additionally, more than 51,000 pieces of illicit information were removed. This featured material promoted “Easy money-making with Bitcoin investments.”

Additionally, 105 of the 500 or so websites that were examined were taken down. According to reports, these websites produce courses on cross-border currency speculation, information on crypto mining, and endorsements of cryptocurrencies.

Given China’s opposition to Bitcoin, the most recent report is not shocking. It is likely that the Chinese government will keep its ban on all cryptocurrencies in the area.

Is Chinese Bitcoin activity still going strong?

Several stories of underground mining in the nation have appeared despite the ban. It appears that there is still some BTC-related activity in the area.

According to local reports, due to legislative ambiguity and recurrent zero-Covid lockdowns in China, some Web3 firms with roots within the country are in the process of moving to Singapore.

However, not all Chinese Web3 companies want to leave. Building blockchain infrastructure businesses are probably going to stay, as Beijing has expressed support for such ventures.

Bitcoin bears scare China’s crypto market

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Numerous predictions about Bitcoin [BTC] have been made possible by the start of the bear market. A few people appear to be certain that this bear market is the end of the king currency, while others seem to think that this setback is simply a catalyst for a potential bubble. Several nations proceeded to implement market restrictions as these forecasts poured in, but one country persevered in its animosity toward bitcoin.

The history of the world’s largest cryptocurrency in China is noteworthy. China at first became a BTC hotspot. The nation provided the most well-known crypto platforms, and for the longest time, it saw the biggest level of crypto activity. The industry’s degree of decentralization, meanwhile, did not sit well with the Chinese government. As a result, the nation later said goodbye to all things cryptocurrency. China still records activity in mining and trading despite this.

As a result of the market’s decline, the Chinese government continued to terrorize its populace by claiming that the world’s largest cryptocurrency would soon reach zero. According to a recent article from the news portal for the Chinese people, Economic Daily, “Bitcoin was nothing more than a string of digital codes.” Users were informed by the site that purchasing low and selling high were the primary methods for generating returns. The newspaper further stated,

“In the future, once investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is utterly worthless.”

Saylor’s lifeboat- Bitcoin

Michael Saylor of Microstrategy has frequently stated his support for Bitcoin. Saylor has been a well-known BTC advocate, holding onto his money and encouraging others to buy additional BTC. Saylor was bullish once more despite the collapse of the biggest cryptocurrency in the world. He said,

“Bitcoin is a lifeboat”

Michael Saylor, CEO of Microstrategy

Furthermore, there is a significant gap in the market as BTC prices keep falling. Although the future of the cryptocurrency is uncertain, the holders anticipate a potential rise. At the time of writing, Bitcoin (BTC) was priced at $20,597.97 with a daily rise of 1.36%.

Following Terra’s Demise, China’s State Media Notifies Stringent Crypto Regulations

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Following the demise of the Terra ecosystem, China’s state-owned media source, the Economic Daily, has suggested that the Chinese government may impose even stricter rules on cryptocurrencies and stablecoins.

The source revealed the collapse of TerraUSD (UST) and Luna (LUNA) in a story published on May 31, describing the algorithmic stablecoin’s workings. It took advantage of the so-called black swan occurrence to applaud China’s move to ban bitcoin.

“My country has been cracking down on virtual currency trading speculation and a large number of trading platforms.”“This has effectively blocked the transmission of this risk in China and avoided investment risks to the greatest extent possible.”

Reporter Li Hualin

Will China restrict crypto further?

Following the Terra collapse, Hualin explained that “many other countries” are looking to control stablecoins, citing Zhou Maohua, a researcher at the China Everbright Bank, to argue for more limitations within China:

“In the future, our country will also speed up the completion of regulatory shortcomings, and introduce targeted regulatory measures for the risk of stablecoins to further reduce the space for virtual currency speculation.”

Since mid-2021, China’s government has been toughening its position on cryptocurrency after outlawing crypto exchanges in 2017. Several government authorities have warned against investing in cryptocurrency, and there has been a massive crackdown on cryptocurrency mining in the country.

Colin Wu, a China-based cryptocurrency reporter, clarified the ban, saying that while the rules bar institutions from providing crypto services, “they do not prohibit regular people from utilizing cryptocurrencies – there is no specific law against it.”

Bitcoin (BTC) is subject to property rights, rules, and regulations, according to a Shanghai court, since its value, scarcity, and disposability satisfy the criteria of virtual property.

When it comes to how traders get their hands on cryptocurrency in the first place, Cointelegraph recently reported on the growing use of VPNs among Chinese traders. Traders began increasingly using offshore exchanges or peer-to-peer (P2P) networks for all of their activity after the previous wave of restrictions.

However, the Chinese Communist Party-controlled publication stated that regulators in other nations should “strive to develop worldwide general standards” to increase surveillance on cross-border payments.