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СryptoYuan on its way in China

Last week in the cryptocurrency market has become a test for the bulls. Market growth, which continued over the past few weeks, was called into question in the middle of the last reporting period. On the night of February 15-16, the cost of the “first cryptocurrency” fell below the $ 10,000 mark, causing a chain reaction to drop in the cost of almost all other cryptocurrencies.

Over the next few days after the fall, the market was in the red zone, and only towards the end of the last week there was a tendency for growth to recover and it seems possible that the total cryptocurrency market capitalization will exceed $ 300 billion. Meanwhile, the largest provider of stable cryptocurrencies Tether announced the beginning of cooperation with the notorious blockchain startup Chainalysis. Through the development of the latter, Tether plans to check for suspicious transactions involving USDT.

“The KnowYour Transaction (KYT) service for token issuers presents a unique solution to ensure compliance with anti-money laundering (AML) regulatory requirements. This real-time service provides monitoring at all stages of the token’s life cycle – from the moment of issue to its redemption, ”Chainalysis representatives say.

“Stable Tether cryptocurrencies, the value of which is tied to other assets, were originally designed to attract users who are wary of price volatility, which is an integral part of traditional cryptocurrencies,” co-founder of Chainalysis Jonathan Levin expressed his opinion and added that with this partnership Tether confirms that they are committed to regulatory compliance.

The US Treasury is planning to tackle cryptocurrency regulation tightly. The ministry is preparing to submit new requirements for blockchain projects in the near future. This was stated by head of the department Stephen Mnuchin during his speech in Congress. At the same time, he kept silent about the details of the upcoming reform, noting only that the Federal Government of the United States devotes much time to the issue of cryptocurrencies. Earlier, the US Presidential Administration proposed to significantly expand the powers of the Ministry of Finance and tighten control over cryptocurrency assets.

Unlike the United States, where the authorities are still eyeing a new type of asset, the People’s Republic of China is in the process of developing an official state currency based on the blockchain technology, the digital renminbi. The Bitcoinist portal published an analytical review of the project, in which it said that the People’s Bank of China has already filed 84 patent applications, which are closely related to the above initiative. They describe the principles of the protocol, on the basis of which it is planned to issue a digital renminbi, as well as the main approaches to its integration into the existing banking system of the country. “China is investing a lot of money in the CryptoYuan project and demonstrates an extremely serious attitude to this project, which is very different from the approach of the United States,” commented President Perienne Boring, President of the US Chamber of Digital Commerce.

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