Cuba is set to recognize and regulate Bitcoin, while China keeps reminding its residents to stay away from crypto.
For the first time, the central bank of Cuba is going to establish rules regarding virtual asset transactions. Authorities are considering for the country to follow El Salvador’s steps and make Bitcoin a legal tender.
Cuba has temporarily stopped accepting US dollars bank deposits because of former president Trump’s restrictions. As the economy is struggling, sources claim that authorities will license businesses regarding crypto-related services they will provide for the public.
But what is happening in China?
The central bank of China (PBoC) has reportedly increased its pressure towards crypto in general. In a public reminder, Yin Youping, the deputy director of the Financial Consumer Rights Protection Bureau stated that the PBoC will continue to crack down on virtual currency transactions.
“We remind the people once again that virtual currencies such as Bitcoin are not legal tenders and have no actual value support.”
China’s cryptocurrency mining and trading crackdown caused a literal market crash in May. The State Council of China decided to shut down everything related to these types of currencies. The country continued, demanding the shut down of more mining facilities. The use of coal for these operations grabbed the attention of the government.
“We should be more alert and look for potential risks. We should crack down on bitcoin mining and trading activities and prevent individual risks from being passed to the whole society.”
China has been trying to reduce carbon emissions, and the high coal consumption activities have been under supervision for quite some time now. The State Council thinks digital currencies not only increase pollution, but they can also interfere with the financial stability of the country.
China also arrested more than 1,000 people on money-laundering charges. 1100 individuals and 170 organizations have allegedly used digital currencies to elude the law was announced by the Ministry of Public Security.