The Daily: Coinsquare Secures Banking Partnership, Québec Elections Bring Hope to Miners

Cryptocurrency exchange Coinsquare has reached a partnership agreement with a major Canadian bank and we’ve covered the announcement in The Daily. Also in Canada, a large bitcoin farm may be cut off from the grid by a mayor concerned about electricity consumption, and elections in Québec are likely to change the game for mining companies. In China, a bitcoin billionaire turns back on the industry; the government crackdown may have played a role.  

Also read: Fake Volume, Tether Troubles, Bitcoin’s “Inevitable” Mass Adoption

Coinsquare in Agreement With Leading Canadian Bank

Coinsquare CEO Cole Diamond described the agreement as a “tremendous boost” not only for Coinsquare but for the entire Canadian cryptocurrency industry. Quoted by Prnewswire, he said: “This announcement is one of many examples of how institutional third party partners put their faith in our approach to the cryptocurrency business. We’re thrilled to start a relationship with a major Canadian bank and we’re excited for what it means for our users.”

The announcement comes after Coinsquare recently completed a third-party consolidated financial audit which concluded that its financial statements are “free from material misinformation.” According to its Chief Financial Officer Ken Tsang, both developments are part of the efforts of the Canadian crypto company to be regarded as a trusted cryptocurrency trading platform.

Large Bitcoin Farm Under Threat in Canada

The farm occupies 4.5 ha of land where more than 50 containers with 180 servers employed in mining cryptocurrency are located. Its energy needs are satisfied by a gas-powered electrical station and four wind turbines. The company is taking advantage of the low electricity rates in Medicine Hat where it has hired 40 people so far.

Despite the sizeable investment in the local economy and the positive effect on employment, Medicine Hat’s mayor has warned Hut 8 that the farm may be cut off from the grid if it gets overloaded. City authorities have also been pressured by environmental activists. A Greenpeace representative recently suggested that cryptocurrency mining should be banned unless it’s using renewable sources.

Québec Elections Said to Determine the Future of Mining

Bitcoin is in a way detached from traditional politics, soldiering on regardless of political developments here and there. However, it’s been claimed by mainstream media that one particular election is likely to affect it, at least on a regional scale and in one particular aspect – mining. The case concerns the recent parliamentary vote in the French-Canadian province of Québec.

According to preliminary results quoted by Canadian media, Monday’s election has been won by the center-right pro-business party Coalition Avenir Québec (CAQ), which will have a majority in the provincial legislature and form the new government. And while neither the outgoing liberals nor the winners have so far adopted an official stance on bitcoin mining, representatives of the nascent industry claim CAQ has demonstrated some support for the miners during the moratorium on energy supplies in Québec this summer.

The coalition’s leader François Legault has previously indicated his intention to make Hydro-Québec more profitable by fulfilling its potential. The utility company is one of the largest hydropower producers in the world.

Bitcoin Tycoon Li Xiaolai to Leave the Industry

“From this day on, I, Li Xiaolai, will personally not invest in any projects (whether it is blockchain or early stage). So, if you see ‘Li Xiaolai’ associated with any project (I have been associated with countless projects without my knowledge, 99% is not an exaggeration), just ignore it,” Xiaolai recently said in a post quoted by Sludgefeed. His statement was published on the Chinese microblogging platform Weibo.

The prominent crypto investor has not explicitly stated the reason for his decision but the announcement coincides with an escalating Beijing offensive against businesses in the space. Li Xiaolai notes his intentions to explore different opportunities but also admits he is still optimistic about the long-term viability of crypto technology.

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