In recent regulatory news, a criminal investigation may prevent Ebang from conducting an initial public offering, Plattsburgh has passed new regulations governing commercial mining operations, and Ron Paul has endorsed precious metals and cryptocurrencies as a viable alternative to fiat currency.
Criminal Accusations Pose Hurdle to Ebang IPO
Reports are alleging that major mining manufacturer Ebang Communications has become embroiled in a criminal investigation that may pose a challenge to the company’s initial public offering intentions.
The investigation pertains to a transaction valued at 524.9 million Chinese yuan (approximately $76.18 million) between Ebang and wealth management company Yindou.com. Between March and April, it is alleged that Ebang transferred 380 million yuan (roughly $55.15 million), leaving 144.9 million yuan (approximately $21 million).
According to Sina Finance, Ebang is accused of receiving the remaining funds in exchange for potentially laundering money, inflating sales revenue, or collecting a fictitious sales contract in order to bolster the company’s chances at securing its attempted public listing on the Hong Kong Stock Exchange (Hkex).
According to a rough translation, Sina asserts that investors “submitted questioning material to Hkex to prevent Ebang International from listing in Hong Kong” on Oct. 12.
Plattsburgh Council Passes New Regulations for Commercial Miners
The Plattsburgh Common Council has passed regulations mandating new noise and fire safety requirements for commercial mining facilities. The legislation was unanimously passed last week.
According to Sun Community News, the new guidelines state that “no mining facility can produce noise above 90 decibels that can be heard further than 25 feet from the exterior of the building,” and mandate that miners apply for special use permits.
The new rules will apply to miners operating in the City of Plattsburgh, New York in 11 months time – once the current 18-month moratorium on commercial mining in Plattsburgh has been lifted.
Ron Paul Advocates Adoption of Precious Metals and Cryptocurrencies
Retired American politician Ron Paul recently published an article describing the Federal Reserve as “crazy.”
The article asserts that “government-created fiat currency” is “anything but stable,” arguing that “Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates.” Paul argues that such policies “create an illusion of prosperity,” however when “reality catches up… there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”
Paul asserts that “market money” is a viable alternative to fiat money, advocating for the passing of the “Audit the Fed bill,” which would allow “people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
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