Investing and exchanging digital assets are ways to make a profit in the cryptocurrency market. Cryptocurrency mining provides a good opportunity to earn money. Today this...
China Wants to Fight Bitcoin Mining and Other Cryptocurrencies
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Bitcoin mining in China may be restricted or banned. The value of BTC has skyrocketed in recent days.
The authorities of Qinghai province, as well as one of the districts of Xinjiang, decided to close cryptocurrency mining projects by the end of this week. The decision is dictated by the statement of the Chinese Deputy Prime Minister about the intensive fight against virtual mining - since the Celestial Empire has a large share in the cryptocurrency market, their future is in question.
Last week, China banned the offering of cryptocurrency-related services to financial institutions and payment companies, and the People's Bank of China said that virtual currencies are not real money and therefore cannot be considered legal tender. We just learned that one of the Chinese institutions is opening a hotline to report suspicious mining transactions, and now the Chinese deputy is mentioning an intense fight against cryptocurrencies, talking mainly about bitcoin. Hence, there is a possibility that BTC farms and mines will close soon.
The authorities of the Celestial Empire have long made it clear that they are not on their way with cryptocurrencies. In 2017, it was forbidden to receive virtual currency to finance projects through an initial public offering of a token, the so-called ICO (Initial Coin Offering), and in 2019 there were voices about a possible ban on mining. Stricter restrictions may soon come into effect, according to a statement from the Financial Stability and Development Commission (FSDC) on May 21 - the meeting outlined the main goals of the committee's work, including: “(…) fighting bitcoin. booty ".
China accounts for about 75% of BTC mining, so such words hit the cryptocurrency market hard. The value of bitcoin has plummeted in recent days and even plunged to around $31000, both as a result of reports from Asia and as a result of statements from Tesla CEO Elon Musk. Currently, the BTC exchange rate is about 37 thousand. dollars. The authorities of the Celestial Empire justify the steps taken by saying that limiting the trade in cryptocurrencies will contribute to greater stabilization of financial resources and a more effective fight against money laundering, drugs or smuggling; they also highlight the negative environmental impact of bitcoin mining.
However, regardless of the reason, China will lose in the new policy, and its neighbors will win. Justin d'Anetan, a Diginex specialist offering financial services in the field of virtual funds and cryptocurrencies, predicts that BTC miners will move to Mongolia, Kazakhstan and Afghanistan.
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