PANews weekly （12.17-12.23）

 The system of credit rating in tax paying based on blockchain technology was published on the “China Taxation”website


On Dec. 19th, the “Study on using blockchain technology to push for credit managing in tax paying in China”was published on the “China Taxation”website, presenting the design of the system of credit rating and management in tax paying based on blockchain technology as well as related future outlook.

The article stated that blockchain is a new technology that can bring about asset circulation and privacy protection regarding information data, providing new opportunity for using big data in public governance and market economy. In addition, the article also analyzed related domestic and foreign uses and studies in blockchain and tax paying credits, and it also discussed possibilities of using blockchain technology to solve problems in the current system of credit management in tax paying. According to the article, in regard of the current situation of credit management in tax paying, blockchain technology can help solve numerous problems, including data security and information asymmetry, unscientific credit ratings, the expansion of credit management boundary, and the imperfect system of joint incentive and joint punishment.

Fuzhou is planning to build a Blockchain Economic Comprehensive Pilot Zone

According to Fuzhou Evening News, on Dec. 16thin the first Global Blockchain Industry & Entrepreneurs Summit, related officials in the Fuzhou City Government indicated that Fuzhou City Council and City Government are planning in great efforts to build the Fuzhou Blockchain Economic Comprehensive Pilot Zone, to nurture blockchain enterprise incubators, and to focus heavily on policies and measures to introduce and locate related enterprises and talents.

Authorities in Fuzhou are currently planning a three-year action plan on blockchain, so as to speed up the nurturing of emerging industries in blockchain as well as allow Fuzhou to lead in the nation regarding blockchain application.

The Korean Government plans to add blockchain technology to its new Department of Development Enhancing Affairs

According to Decenter, the Korean Government hold the enlarged meeting on economic affairs, in which the “2019 Economic Policy Direction”was confirmed and published. According to the Direction, the Government is planning to add blockchain technology to its new Department of Development Enhancing Affairs, with higher tax exemption rate than other R&D affairs. The Government also announced that it will push for a series of policies and measures including the enhancement of financial systems to improve economic vitality; at the same time, in order to also enhance the fairness in market economy, it was decided that policies will be strictly implemented, so as to boost the cooperation between big and small corporations. 

The operating company of Korean Exchange “Upbit”accused of market manipulation, 3 including the Chairman charged 

According to Yonhap News Agency, the operating company of Korean Cryptocurrency Exchange “Upbit”is being accused of market manipulation, and is being charged as such. The company is being accused of creating fake member accounts, disguising into investors with high amount of assets, and then obtaining cryptocurrency worthy of 150 billion Korean wons through transactions; in addition, the company also fabricated a wrongful market environment and raised market prices intentionally, so as to come up with purchase orders worthy of 254 trillion wons and to conduct transactions regarding cryptocurrency worthy of 4.2 trillion wons. South Seoul local prosecution office announced on Dec. 21stthat it has charged 3 individuals including the Chairman with forgery and fraud.

Later, Upbit made an announcement in response to the prosecution, indicating that it did provide liquidity through corporate accounts, and no profits were gained and no fake transactions were made during the process. Furthermore, Upbit also claimed that when it first went online, in the first two months for business purposes it did made some arbitrage purchase and selling transactions, but this did not impact prices and only accounted for 3% of the total amount of transactions at that time.

Stablecoin data: on average 4 wallet addresses control 50% of liquidized amount in one cryptocurrency

According to the report of “2018 the beginning year of Stablecoin: the quantitative analysis on liquidity and stability”, in 2018 cryptocurrency market witnessed the fluctuation of falling from the peak in bull market to the valley of bear market; 

Stablecoin, the long-term transaction medium of exchanges, rose to become the “star”in the cryptocurrency business.

1. Stablecoins such as TUSD, USDC and PAX has risen; byNov. 25th, USDT has lost 24.9% of share in the stablecoin market.

2. Emerging stablecoins were more active in additional printing: TUSD had 143 times of additional printing (including burning) with the total additional printing amount of 183 million coins, accounting for 7.68 of total market share as the second place.

3. Top 5 major holders in respective stablecoins hold 12.75% of the total amount of coins on average, which means that on average 4 wallet addresses can control 50% of liquidized amount of one stablecoin.

4.All eight stablecoins in the research have together liquidized 659 transaction pairs, however most stablecoins are highly dependant on one or two particular exchanges, including nUSD, GUSD and DGX.

5. Stablecoins have certain contribution in risk avoiding, and this is even more obvious during bear market; stablecoins targeting US dollars contributed especially more in this regard than other stablecoins. 

Related: Date analysis: The new situation of “onesuper power and multi-great power”in stablecoins

The first cryptocurrency payment platform emerged in Hong Kong

According to 21st Century Business Herald, on Dec. 18thCSPay, a third-party cryptocurrency payment platform, announced their entering into the Hong Kong market. CSPay is a e-wallet and a transaction platform who also provides payment service, and compared with other third-party payment platform it only allows top up in cryptocurrency; also, in the future Hong Kong users can use credit cards to buy Bitcoin on CSPay. Currently CSPay already covers six markets in the Asia-Pacific regions, including China Mainland, Hong Kong, Macau, Japan and Korea.

Ebang again delivered IPO prospectus with revenue heavily declining in S3

According to CoinDesk, cryptocurrency mining company Ebang has re-delivered IPO prospectus to HKEX, indicating that both its income and gross revenue “heavily declined”in S3. According to HKEX’s database of applying cases, Ebang delivered the new prospectus on Dec. 20th, which exposed its financial situation up to Jun. 30ththis year. For the first 6 months in 2018, Epang’s income is about 2.1 billion RMBs (about 304 million US dollars), which is eight times of the same period in 2017; revenue also grew during the first half year for Ebang, reaching 135 million US dollars, which is 16 times of the same period in 2017. Nevertheless, for S3 in 2018, the monthly average of purchase orders it received for Bitcoin mining machines drops significantly. However, Ebang did not reveal further detailed information in S3.