Cryptocurrency miners such as BTC.TOP and Huobi Mall are ending their operations in China. That follows Beijing’s more effort to clamp down on BTC mining and trading activities in the country. Keep in mind that the Chinese move sent most cryptocurrencies tumbling over the last few days. Although different facets contribute to the current high volatility, the Beijing announcement played a role.
Liu He chaired a State Council team late on Friday, where he announced the effort by China to investigate crypto mining activities. Keep in mind that the council has never targeted crypto mining, a large business in the country accounting for more than 70% of the cryptocurrency supply in the world.
Crypto mining dealings involve users using powerful and special computer equipment to verify digital asset transactions. The mining process produces newly minted crypto assets such as Ether and Bitcoin.
Bitcoin suffered from the China announcement, declining by almost 50% from its highest prices this year. The virtual coin lost around 17% on Sunday. However, Bitcoin recovered a bit.
Why is the government showing increased concern about cryptocurrency activities? Well, most regulators are interested in preventing money laundering and protecting investors in the virtual space. The jurisdiction tries to find the best way to regulate the crypto business. Given the decentralized nature of this industry, most crypto fans find the government moves to contradict. What do you think?
Jerome Powel, a US Federal Reserve Chairman, attacked cryptocurrencies over the past week, stating that digital coins are risky to monetary stability, thus the need for stiffer regulations.
Shifting To Abroad
On Sunday, the Huobi exchange announced that it suspended its crypto services following China’s remarks. However, the crypto exchange asked its customers to remain calm as it finds international service providers.
BTC.TOP, a cryptocurrency mining pool, followed the steps announcing that it has banned its China deals due to regulatory risks. Jiang Zhuoer, the founder, said that the BTC.TOP platform will shift its crypto mining operations to North America.
He further said that the crackdown might force most mining rigs overseas.
China lost its international crypto trading name in 2017 after the banning of crypto exchanges by Beijing.