20 Sep Chinese Bitcoin Ban Could Effect EB-5 Market
By Brian Idehen, Esq.
A change to the Bitcoin and cryptocurrency market is brewing. Currently, some of the world’s biggest Bitcoin mines and cryptocurrency exchanges are being closed down or are relocating due to imminent changes in China’s cryptocurrency regulations. BTCC, the oldest bitcoin exchange in the world is closing down at the end of September, citing stricter enforcement of Bitcoin and cryptocurrency laws soon to be implemented by China. Following suit, ViaBTC, Yunbi, and other major exchanges and mines in China will be closing as well. The Chinese government has yet to officially release the new regulations, however, reports indicate the changes could go from banning crypto exchanges (while still allowing over the counter (OTC) exchanges to continue), to banning Bitcoin trading altogether. Additionally, U.S-based crypto exchanges, such as Coinbase, are expecting to have their domains blocked by Chinese firewalls.
With increasing scrutiny by USCIS over path of funds and third party transfers from countries with currency restrictions, such as China, the EB-5 market is seeking new legal and efficient ways for investors to transfer money. One possible solution being researched is Bitcoin. Bitcoin, the cryptocurrency that has taken the globe by storm, would provide an opportunity for investors to make a direct purchase of bitcoins from their foreign account, and sell those coins for USD. Bitcoin purchases are common and have long been legal in many countries including the U.S., U.K. and China. MSA recently sat down with Crypbrokers’ Des Landen to discuss how bitcoins and cryptocurrencies can be utilized in the EB-5 market. To access the podcast and the accompanying summary please visit MSA Global’s website at: http://mshahlaw.com/using-bitcoin-international-transfers-des-landen-crypbrokers/
While it has yet to be determined how strict legislative changes may affect the cryptocurrency market, companies closing shop in China cannot be viewed as a plus for the industry. Countries like Japan, however are looking to pick up the slack, as major mining efforts have already been announced for the country in 2018. The Japanese internet conglomerate GMO Internet Co., Ltd has pledged to invest over $3 million to launch its bitcoin mining operation next year. This announcement was promptly followed by the Japanese e-commerce giant DMM announcing they will begin mining Bitcoin in Japan and will be launching a Virtual Currency Division. DMM intends on becoming one of the 10 largest bitcoin mining farms in the world in 2018, helping present the appearance that Japan intends on filling the void China will leave in the market.
MSA will continue to keep an eye on any cryptocurrency regulation changes in Asia and other parts of the world, as we continue to monitor the opportunity for using cryptocurrency investments as a path of funds alternative. Stay-in tune to our website for our next podcast sorting out the new regulations on Bitcoin after more information and cryptocurrency news becomes available.
About the Author:
Brian Idehen, Esq. is an attorney with Mona Shah & Associates.
Brian has experience in investor and corporate immigration law and assists MSA with various immigration and non-immigration matters such as EB-5, E-2, O-1, L, H and G (Diplomatic) visas, EB-1, PERM, securities law and corporate law matters. His experience includes advising high-net worth individuals and multinational corporate companies such as large financial institutions, fashion designers, advertising agencies, pharmaceutical companies, transportation companies, and law firms on corporate and immigration matters.