Friday, July 30, 2021

China intensifies crackdown on crypto mining as miners flee to other countries.

The Takeaway:

China has intensified its crackdown on cryptocurrency mining as crypto miners seek solace in other countries, including the USA and Kazakhstan.

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At least three more provinces in China have ordered a crackdown on crypto mining operations, falling in line with Beijing’s regulations, which has diminished the country’s share of computational power used to support the global bitcoin network. Earlier in May, the State Council’s Financial Stability and Development Committee announced a further crackdown on crypto mining and trading in the country. The crackdown has caused miners to flee the country. 

 

Eastern Chinese provinces follow the crackdown initiative like other states. 

According to the South China Morning Post, The local governments of eastern Anhui province, Henan in central China, and northwestern Gansu province followed the recent initiatives against crypto mining implemented by southwestern Sichuan and Yunnan provinces, the northern Inner Mongolia region, northwestern Qinghai province, and the western Xinjiang region. Colin Wu, an influential blogger who writes about blockchain and cryptocurrency, tweeted that the Henan and Gansu branches of the State Grid Corp of China started closing local cryptocurrency mining farms, following a nationwide directive by the world’s largest utility company.  

 

Governments across countries intensify crackdowns on crypto mining. 

Earlier in May this year, the State Council’s Financial Stability and Development Committee – chaired by Vice-Premier Liu He, the Chinese president’s top representative on economic and financial matters – announced a further crackdown on bitcoin mining and trading in the country. The crackdown on crypto miners in China and Iran has resulted in a spectacular exodus of bitcoin miners to new locations in the United States and Kazakhstan. It has also taken out a vast number of machines in the global network used to perform the calculations that verify transactions and create new bitcoin. Earlier, Wyoming senator Cynthia Lummis called on bitcoin miners who were turned away by China to establish in her state. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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