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More Chinese States issue bans on cryptomining

Please try another search Economy2 hours ago (Jun 11, 2021 05:50AM ET) © Reuters. FILE PHOTO: Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China’s flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration/File Photo SHANGHAI (Reuters) – Authorities in China’s northwestern province…


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Economy2 hours ago (Jun 11, 2021 05: 50AM ET)

More Chinese provinces issue bans on cryptomining© Reuters. FILE PHOTO: Small toy figurines are seen on representations of this Bitcoin virtual money displayed in front of an image of China’s flag in this case picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

SHANGHAI (Reuters) – Authorities in China’s northwestern province of Qinghai and also a district in Arabian Xinjiang ordered cryptocurrency mining jobs to shut this week, as local authorities enter practice Beijing’s call to crack down on the industry.

China accounts for a over half of global bitcoin manufacturing, but some miners have been contemplating moving elsewhere following the State Council, China’s cabinet, vowed to clamp down on bitcoin mining and trading last month.

“We are standing at an inflection point for the mining industry here in Asia,” said Lei Tong, Managing Director Financial Services at Babel Finance, a Hong Kong-based crypto lender and asset manager.

“Many miners now are seriously re-evaluating their future operational plans as the current regulatory environment is unfavorable for their growth and the scaling of their business.”

The Qinghai office of China’s Ministry of Industry and Information Technology, on Wednesday ordered a ban on fresh cryptomining jobs in the province, also told present ones to close down, according to a notice seen by Reuters and supported by local officials.

Cryptominers who put up projects claiming to be running big data and super-computing centres will be punished, and companies are barred from supplying sites or power supplies to mining tasks.

The Development & Reform Commission of Xinjiang’s Changji Hui Prefecture also sent out a notice on Wednesday, found by Reuters and confirmed with officials, ordering a cleanup of the business.

Cryptomining projects in Xinjiang’s national Zhundong Economic-Technological Development Park were ordered to close.

Xinjiang is China’s biggest bitcoin mining centre, accounting for about a third of total computing power. Qinghai is in ninth place, based on data compiled by the University of Cambridge.

China is stepping up a clampdown on cryptocurrencies following a international bull run in bitcoin prices rekindled local speculation.

As well as the movement by the State Council, three business bodies prohibited crypto-related financial and payment solutions, one factor behind a worldwide selloff that briefly wiped $1 trillion away crypto market capitalisation.

Other regional authorities have already responded. Inner Mongolia, China’s third biggest mining center, has released draft rules to root out the company and government in Sichuan, in 2nd position, have announced a probe into the sector.

“Scouting for new destinations is truly happening on a global scale with North America and Europe among the most sought after places, followed by countries in Central Asia and the Middle East,” said Tong of Babel Finance.

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