In addition to high electricity consumption, China is worried about speculation.
June 12, 2021 at 6:19 PM TASR
SHANGHAI. China continues to take action against cryptocurrencies. Other provinces have banned the extraction of cryptocurrencies.
Local media reported on Saturday that the campaign against the misuse of electricity by bitcoin miners had already reached the southwestern province of Yunnan.
Already on Friday, there were reports that the northwestern province of Qinghai and the neighboring Uyghur Autonomous Region of Xinjiang had ordered the closure of cryptocurrency mining projects this week. Local governments are gradually implementing Beijing’s call for a ban on cryptocurrencies.
Beijing is worried about speculation
In addition to the huge consumption of electricity needed to extract cryptocurrencies, the Chinese government is concerned about speculation after the sharp rise in the price of bitcoin.
China accounts for more than half of bitcoin mining, but some miners have already considered moving elsewhere as the Chinese government announced in May that it would ban bitcoin mining and cryptomen trade.
The Yunnan Provincial Energy Authority issued a ruling on Friday to investigate the misuse and unauthorized use of electricity by bitcoin miners and warned of punishment, Chinese media reported.
The mining of kyptomies in Asia is awaiting change, according to the head of the Hong Kong crypto-company Babel Finance Lei Tong. “Many miners are seriously reviewing their future operating plans as the regulatory environment is currently unfavorable for their growth and scaling of their business,” he said.
The Chinese Ministry of Industry and Information Technology’s Qinghai Province Office issued a ban on Wednesday on all new cryptocurrency mining projects. Existing projects must also be closed.
China banned the cryptomen trade in 2019 and is tightening restrictions on bitcoin mining. China’s Inner Mongolia Autonomous Region, a major bitcoin center, announced in March that it wanted to ban new cryptocurrency mining projects and cancel all such existing activities to reduce energy consumption.
At the end of May, she then proposed penalties for companies and individuals involved in the extraction of cryptocurrencies to completely suppress their extraction.
High energy consumption
Due to its cheap energy, Inner Mongolia accounted for up to about 8% of world bitcoin production. By comparison, the United States’ share of global mining is only 7.2%.
According to CoinMarketCap, bitcoin sold at a loss (within 24 hours) of almost 4% after USD 35,537.66 (EUR 29,339.10) late late in the afternoon (around 5.30 pm CET).
This week, the largest and most famous cryptocurrency was supported by the news that it will become the official currency in El Salvador. However, the strengthening was only temporary and the price of bitcoin is falling again.
The price of bitcoin has fluctuated sharply since the beginning of the year. It reached a new record of nearly $ 65,000 in April. In mid-May, it came under a lot of pressure and fell to almost $ 30,000.
(1 EUR = 1,2125 USD)