Beijing Sticks With Blockchain | Bitcoin Mining Tax Scrapped

BEIJING RELEASES WEB3-FOCUSED WHITE PAPER

Last weekend, Changpeng Zhao, the chief executive of Binance, drew attention of his Twitter followers to a new paper published by the Beijing Municipal Science and Technology Commission that touted the possibilities of Web3 technology—generally understood to be a decentralized, blockchain-based internet.

“Interesting timing on this Web3 white paper from the Beijing government tech committee,” said Zhao alongside photos of the document, noting that new virtual asset regulations in Hong Kong takes effect on June 1. He added that the paper “talks a lot about NFTs [non-fungible tokens], VR, AI, metaverse, etc.”

Justin Sun, an advisor to crypto exchange Huobi and the creator of cryptocurrency tron, also praised the report, according to the South China Morning Post, as did Yat Siu, chairman of Animoca Brands, a gaming-software and venture-capital company. The news outlet said mention of cryptocurrencies was “noticeably absent from the report, as the central government clarified in September 2021 that trading of such assets in the country was illegal, even as it has continued to promote the industrial use and development of blockchain.”

U.S. DEBT CEILING DEAL STALLS 30% MINING TAX

Crypto mining stocks rallied this week as President Joe Biden apparently agreed to withdraw his planned 30% tax on electricity used by the companies. Biden and House Speaker Kevin McCarthy (R-Calif.) reached a deal to suspend the U.S. debt ceiling last weekend, and Rep. Warren Davidson (R-Ohio) told Forbes the agreement excludes the tax. The Senate passed the legislation late on Thursday. There is nothing to prevent the proposed levy from being revived.

Hive Blockchain led the week’s gainers, rising 10% as of Friday afternoon in New York. Marathon Digital Holdings followed with an 8% jump. Hut 8 Mining, Argo Blockchain and Riot Platforms were up 5% or more.

Source: Forbes Digital Assets. Prices as of 4:00 p.m. on June 2, 2023.

NANSEN IDLES NEARLY A THIRD OF ITS STAFF

Blaming “brutal” conditions in the cryptocurrency market and an overly aggressive expansion, blockchain analytics provider Nansen has laid off 43 employees, or 30% of its staff. In addition to the 43 employees laid off Tuesday, other open roles would not be filled, the company told Forbes. More than 100 employees remain at the firm.

Separately, leading crypto exchange Binance told Forbes that it was reevaluating its staffing “to focus talent density across the organization to ensure we remain nimble and dynamic.” Ismael Garcia Makroum Talbi, a Binance spokesperson, was responding by email to a Forbes request for comment on a Twitter posting by journalist Colin Wu who said the company was going to lay off 20% of its workforce.

HOW MYSTERIOUS NOSTR CREATOR LURED 18 MILLION USERS AND $5 MILLION FROM JACK DORSEY

Disenchanted with social media options like Twitter, the reclusive Bitcoin programmer tells Forbes how he designed his chat-and-payment service for people who dislike corporate control. Read more.

Forbes Crypto Asset & Blockchain Advisor Subscriber-Only Event

The House Committee on Agriculture, one of the main committees along with financial services, is going to be hosting a meeting on crypto market structure. Join us for a virtual event on Wednesday, June 7th at 1:00 pm ET as CryptoAsset & Blockchain Advisor Editor Steven Ehrlich and Senior Contributor Jason Brett share their takeaways.

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ELSEWHERE

Fed Board Issues Order To Silvergate Bank As Part Of Self-liquidation Plan [Cointelegraph]

Binance Loses Market Share After Regulatory Clampdown [Financial Times]

Winklevoss Twins Attempt Pivot After Gemini Loses Money and Employees [Bloomberg]