After China had already announced the Bitcoin mining ban at the end of May, there is again bad news from China for Bitcoin investors. The Chinese state is now completely cracking down on Bitcoin mining. Search engines, meanwhile, are banning the three largest Bitcoin exchanges.
While there has been a lot of good news coming out of Latin America recently, things still don’t look good for the crypto market in China. After many provinces had already spoken out against Bitcoin mining, Qinghai province has now also taken a firm stand against Bitcoin mining. New Bitcoin mining projects have to be suspended. At the same time, all previous mining activities are to be stopped on the spot.
After the State Council meeting on May 21th, the Chinese government released a statement that brought extreme restrictions on Bitcoin mining. Gradually, therefore, provinces are tightening measures against mining centers.
Read more about the ban of Bitcoin mining in China and find the latest business headlines with the Born2Invest mobile app.
Xinjiang controls compliance with Bitcoin mining ban
Xinjiang, a major Bitcoin mining center in China along with Inner Mongolia and Sichuan, is also cracking down on miners. Authorities are checking to make sure mining centers are complying with the shutdowns. Many miners still want to wait out the situation and are allowing operations to continue for now. At the same time, the Chinese government wants to issue harsh penalties against Bitcoin mining centers that masquerade as normal data centers.
After the authorities had already cracked down in Mongolia, the next important region for Bitcoin miners has now collapsed with Xinjiang. Inner Monogolia and Xinjiang generate electricity by burning coal. Therefore, authorities see the move as necessary for environmental reasons.
Bitcoin mining still allowed in Sichuan, but for how long?
In Sichuan, mining centers are still allowed to maintain operations. However, there are also fears that a stricter line will be taken in the near future. Unlike the other provinces, electricity here is generated sustainably through hydropower.
However, renewable energy can only be accessed during the rainy season, which ends in September or October. The influence of Bitcoin mining is, therefore, currently being investigated more closely by the authorities. More and more restrictions on cryptocurrencies are also expected.
The influence of the bans already made itself felt in a very short time. The hashrate of Antpool, the largest mining pool in the world, has collapsed by a quarter. A further decline in mining activities is expected in the coming weeks.
Chinese search engines ban Binance and Co.
Meanwhile, while the crypto market struggles with the restrictions surrounding bitcoin mining in China, search engines in China have banned the three largest crypto exchanges from their results.
Binance, Huobi and OKex, for example, can no longer be found in search engines. Weibo is also blocking searches on these exchanges. It is expected that other exchanges will also soon no longer be accessible via the search engines. Thus, China continues to pursue a tough policy in the fight against the crypto market.
Until now, China was considered an important base for miners in particular. Due to favorable electricity prices, mining could thus be operated as efficiently as possible. After Bitcoin had recently come under criticism due to the high energy consumption, the Chinese government had announced that it wanted to ban this for good.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Encomenda Invests €200,000 to Launch Telemedicine Startup Doctomatic
The fund led by Carlos Blanco and Oriol Juncosa has helped launch this new digital platform, called Doctomatic, for remote...
Burkina Faso: The European Investment Bank Strengthens its Partnership with CAPE
According to the Director-General of CAPE Burkina, the support of the EIB is one of the major factors that has...
The First Four Projects of the Civic Crowdfunding of Venice Were Launched
The first four civic crowdfunding projects in Venice were launched. The project "ONDEW - Let's face climate change together", is...
What Fintech Trends Set the Agenda for 2021 in Argentina
The fintech sector in Argentina has strongly developed during the pandemic. There are 238 fintech companies, i.e., almost three times...
Why Plant-Based Meat Could be the Future of the Food Market
Despite this incredible development and potential, vegetable meat is not the only alternative coming into play in this new era....
Cannabis2 weeks ago
Recreational Cannabis in Argentina, an Unavoidable Debate for the Congress in the Making
Featured2 weeks ago
PwC’s Climate Targets Were Validated by the SBTi Initiative
Crypto2 weeks ago
El Salvador’s Switch to Bitcoin Is Not the Cause of the Price Crash
Business2 weeks ago
Augmented Reality and Flooring in an App: XRA’s Double-Horned Unicorn