Share articles to

Academy Industry Analysis Article
CBDC Crypto mining China Market Watch OKX Insights

PBoC extends DCEP trials, Beosin exec allegedly loses state-owned BTC after shorting with leverage

2021.04.16 Matthew Lam

The central bank of China is extending DCEP trials to more regions as Ebang reveals ambitious crypto-related plans — China Market Watch

China’s digital currency, DCEP, is once again at the center of the blockchain communities’ attention this week after the People’s Bank of China extended a trial to six more regions. Meanwhile, Hangzhou-based Bitcoin-mining chip manufacturer Ebang International Holding Inc. revealed its crypto strategy in a recently issued letter to shareholders. 

On the regulatory enforcement front, an executive of Chinese blockchain firm Beosin reportedly misappropriated $45 million of state-owned BTC and has been detained by police.

Here’s everything you may have missed regarding these stories, and more, in this week’s edition of China Market Watch from OKEx Insights.

PBoC adds six regions to DCEP trial

Li Bin, head of the PBoC’s macroprudential policy bureau, explained that DCEP trials have extended to six new regions:

  • Shanghai
  • Hainan province
  • Changsha
  • Xi’an
  • Qingdao
  • Dalian

Key takeaways

  • The expansion of DCEP trials has further consolidated China’s global leadership in developing central bank digital currencies.
  • Despite the expansion, Li stated that there is no timetable for DCEP’s official launch.

Ebang International reveals crypto growth strategy

Nasdaq-listed Ebang International Holdings Inc. issued an open letter to its shareholders, which set four key milestones to achieve by the end of 2021:

  1. The company will roll out six-nanometer ASIC chips while continuing to develop five-nanometer ASIC chips.
  2. The company will expand its cryptocurrency exchange operation.
  3. The company will establish or acquire cryptocurrency mining farms to mine BTC, LTC and DOGE.
  4. The company will phase out non-cryptocurrency-related business.

Key takeaways

  • The letter to shareholders reiterated Ebang’s focus on developing ASIC mining chips and cryptocurrency exchanges.
  • It also responded to some of the claims published in the Hindenburg report, such as Ebang’s alleged engagement in business with Yindou.

Chinese blockchain firm exec misappropriates state-owned BTC

Gao Ziyang, the chief marketing officer at Beosin, has been accused of misappropriating $45 million in state-owned BTC by Chinese authorities. Chinese police have reportedly detained Gao.

The blockchain firm was responsible for converting BTC to fiat on behalf of the Chinese treasury. Gao allegedly shorted the misappropriated BTC using excessive leverage in August 2020, which led to a $45 million liquidation.

Key takeaways

  • Beosin has denied Gao’s involvement in the case but has not confirmed Gao’s detainment.
  • The company removed Gao’s name from its official website after the report.

OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals. 

Follow OKEx Insights on Twitter and Telegram.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.



%d bloggers like this: