21.10.2021

China’s hostility towards cryptocurrencies opens up great opportunities for the US

Senator Pat Toomey believes the heightened crackdown on cryptocurrencies and mining in China is opening up significant opportunities for the United States.

As you know, this week the Chinese authorities continued to put pressure on the crypto industry, introducing additional bans, including the provision of crypto services to citizens and organizations outside the country.

Despite the fact that many of the provisions of the new documents were not new, the statement from the authorities caused a pullback across the market, during which Bitcoin fell to the level of $ 40,000.

GOP Senator Pat Toomey said the opposition to digital assets by the Chinese authorities opens up new opportunities for the United States in the crypto industry.

“The authoritarian suppression of cryptocurrencies, including bitcoin, by China is a great opportunity for the US. It is also a reminder of our tremendous structural advantage over China. ”

The senator stressed that economic freedom leads to faster growth and higher living standards for all.

“Beijing is so hostile to economic freedom that it cannot even tolerate its people’s participation in the most exciting financial innovation in decades,” he added.

Tumi issued a statement amid attempts by the People’s Bank of China to recognize the illegal activities of platforms that exchange cryptocurrencies among themselves or for fiat. Bitcoin fell below $ 42,000 amid news of tightening regulation.

Recall that at the end of August, Tumi urged the US authorities to adapt legislation to the crypto industry instead of ignoring and suppressing it.

The senator previously co-sponsored a crypto-industry-friendly amendment to the provisions of the bipartisan infrastructure plan.

According to the original wording of the draft law, any person who provides services for the transfer of cryptocurrencies and receives remuneration for this must report to the Tax Service on the activities of their users.

With a certain interpretation, such requirements may apply to miners and node operators in blockchains, developers of crypto-wallets, liquidity providers in DeFi-protocols and other non-custodial players.

On August 10, the US Senate sent a document to the House of Representatives without amendments on cryptocurrencies. As CNBC writes with reference to an official of the Ministry of Finance, the department does not intend to broadly interpret the definition of “broker” to industry participants, even if the infrastructure plan is adopted unchanged.

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