Inner Mongolia will shut down all Virtual Money Mining before the end of April, and the US IRS confirms that purchasing coins with fiat does not require tax reporting.

Regulatory Dynamics

1. Inner Mongolia plans to shut down all virtual currency mining projects by the end of April.

The Inner Mongolia Autonomous Region Development and Reform Commission has released a draft for public comments, planning to comprehensively clean up and shut down virtual currency mining projects, all of which must exit by the end of April, and strictly prohibits the establishment of new virtual currency mining projects. Inner Mongolia has set the energy consumption dual control target for the entire region in 2021 to reduce energy consumption per unit of GDP by 3%, with the increase in energy consumption controlled at around 5 million tons of standard coal.

2. The U.S. IRS confirms that purchasing cryptocurrency with fiat currency does not require reporting.

The IRS's updated FAQ on cryptocurrency shows that purchases of cryptocurrency using fiat currency are not subject to any IRS tax reporting requirements. If cryptocurrency is purchased using another cryptocurrency, "Yes" must be checked on Form 1040.

3. Bogotá Bank in Colombia launches cryptocurrency pilot.

Colombia's main commercial bank, Banco de Bogotá, has launched a cryptocurrency pilot program, allowing select customers to conduct cryptocurrency transactions on its banking platform. Customers can deposit and withdraw cryptocurrencies on mobile and virtual banking platforms, as well as trade cryptocurrencies and exchange them for fiat currency.

4. The Vietnamese Ministry of Finance warns of the risks of cryptocurrency trading.

The Vietnamese Ministry of Finance has warned that cryptocurrency transactions conducted through platforms downloaded via the App Store and CH Play are illegal. The Ministry will closely monitor cryptocurrency trading and warn of the risks associated with illegal transactions and investments. Currently, only the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange are authorized to organize securities trading in Vietnam.

5. The Nigerian Stock Exchange is committed to developing a regulatory framework for digital assets.

The Nigerian Stock Exchange is committed to developing an effective regulatory framework for the digital asset sector to promote financial inclusion. The Secretary-General of the Exchange stated that it will enhance the country's financial inclusivity through technology and create a favorable regulatory environment to ensure a balance between investor protection and technological advancement.

Cryptocurrency Trends

1. EIP-1559 officially incorporated into the Ethereum London hard fork

EIP-1559 has officially been incorporated into the Ethereum "London" hard fork upgrade, expected to launch in July. EIP-1559 aims to reduce transaction fees by introducing a fixed fee and a burn mechanism, which is expected to make the fee market of the Ethereum blockchain more predictable and alleviate congestion.

2. Huobi Asset Management has received approval from the Hong Kong Securities and Futures Commission to invest in virtual assets.

Huobi Asset Management has been granted a license by the Hong Kong Securities and Futures Commission to conduct regulated activities under Type 4 and Type 9. The Hong Kong Securities and Futures Commission has approved Huobi Asset Management's investment portfolio in virtual assets. Huobi Asset Management will launch three cryptocurrency funds: a Bitcoin tracking fund, an Ethereum tracking fund, and a multi-strategy cryptocurrency fund.

3. Filecoin network upgraded to V10

The distributed storage network Filecoin has successfully upgraded to V10, reducing the cost of Window PoSt messages by 90%. This upgrade is mandatory; node operators and miners must upgrade their clients.

4. The U.S. SEC rejects the petition from XRP holders to modify the Ripple lawsuit.

The U.S. Securities and Exchange Commission rejected the petition by XRP holders to amend the Ripple lawsuit. The SEC stated that the petitioners failed to make a claim under the Administrative Procedure Act and could not prove that if the claim were amended, the value of XRP would increase.

5. Tether Faces Ransom Demands, Refuses to Pay Ransom

Tether has officially stated that it has received a ransom demand for 500 BTC but will not pay the ransom. Tether has reported the forged communications and related ransom demand to law enforcement.

Mining News

1. Argentine startup accelerator invests millions of dollars in crypto mining.

The Argentine startup accelerator Grupo Neutrón has invested nearly 4.5 million pesos in cryptocurrency mining, with plans to invest an additional 200 million pesos. The infrastructure is ready, and it will initially mine Ethereum, with plans to expand to other cryptocurrencies in the future.

2. Bitfarms orders 48,000 new mining machines

The Canadian listed mining company Bitfarms has ordered 48,000 new MicroBT mining machines, which are expected to be delivered by the end of 2022. The hash rate will increase from the current 1 EH/s to over 5 EH/s, reaching 3 EH/s by the end of 2021 and 8 EH/s by the end of 2022.

3. Neptune Digital Assets will begin Bitcoin mining.

Canadian public company Neptune Digital Assets announced that it will begin Bitcoin mining operations and has partnered with Link Global Technologies, which will provide services for up to 1,500 ASIC miners.

4. American miner Blockcap purchases 8,400 mining machines again.

U.S. Bitcoin miner Blockcap has announced the purchase of an additional 8,400 AvalonMiner 1246s. After the purchase is completed, the number of mining machines deployed by Blockcap by the fourth quarter of this year will exceed 30,000.

Investment and Financing News

1. ShadowsNetwork completes $1.64 million financing

2. German listed company Advanced Blockchain AG invests in the Polkadot ecosystem project Fractal

3. Polkadot ecosystem currency market protocol Konomi completes private placement financing.

4. Blockchain company Finboot has completed a £2.4 million funding round.

5. Kine completed two rounds of financing totaling 7 million USD.

6. The ZKRollup scaling team MatterLabs has completed Series A financing.

7. Canadian cryptocurrency exchange CoinSmart completes $3.5 million seed round financing.

8. Tidal Finance completes $1.8 million private placement funding.

9. BCB Group completed $4.5 million financing

10. American crypto tax company TaxBit completes $100 million financing

11. The Fantom Foundation receives a $20 million investment from BlockTower Capital

12. Xiaoying Technology will invest $10 million in a venture capital fund managed by Dragonfly Ventures.

13. The DeFi protocol Sovryn raised $10 million through a token sale.

14. Cryptocurrency mining startup Compass Mining completes $1.7 million funding.

15. Blockchain project LazyLedger Labs raises $1.5 million in seed funding.