According to recent regulatory news, the Initial Public Offering (IPO) of Ebang Communication can be in trouble.
Ebang Communication is one of the largest bitcoin mining chip makers in China. In June this year, the company has shown its interest to go public on the Hong Kong Stock Exchange (HKEX). A recent criminal investigation may prevent Ebang Communication from conducting an IPO.
Ebang has become embroiled in a criminal investigation which may pose a challenge to the IPO of the company. According to the investigation report, there was a transaction of $76.18 million (approximately 524. Million Chinese yuan) between the major mining devices manufacturer Ebang Communication and wealth management company Yindou.com. In March-April, Ebang transferred 380 million yuan and kept 144.9 million yuan pending. According to Sina Finance, Ebang received this money in exchange of laundering money, inflating sales revenue, or collecting a fictitious sales contract to increase the chance of securing a public listing on the Hong Kong Stock Exchange.
American politician advocates crypto adoption
In a recent article, Ron Paul, the retired American politician said that Federal Reserve is crazy. Ron said that the central government created fiat currency and central banks increase and decrease the money supply to control the economy by controlling interest rates. According to Ron, such kind of policies create an illusion of prosperity while in reality there is economy slow down, recession or worse which leads the Federal Reserve to start the boom and bust cycle again and again. Paul believes that cryptocurrencies are the viable alternative of the fiat currency.
Plattsburgh Council Passed New Rules on Mining Operations
Plattsburgh Council has passed new regulations to govern commercial cryptocurrency mining operations. Last week, the council passed new regulations regarding noise and fire safety requirements for commercial mining facilities. According to the new guidelines passed by Plattsburgh Council,
“No mining facility can produce noise above 90 decibels that can be heard further than 25 feet from the exterior of the building.”
The new rules will be applicable for the miners who are operating in the city of Plattsburgh. Now it will be mandatory for the miners to apply for the special use permits.