Cryptocurrency miners in china including HashCow and BTC.TOP has ceased all operations due to the Beijing crackdown on bitcoin mining and trading operations in the midst of global regulatory scrutiny.
Vice Premier Liu He led the State Council committee on Friday regarding the financial risks posed by cryptocurrencies and declared a crackdown on all digital assets. This was the first time the Chinese cabinet specifically targeted its crypto mines which make up for 70% of the world’s total supply of cryptocurrency.
Huobi, a cryptocurrency exchange, ceased all mining and trading services to clients from mainland China and focused its efforts on overseas businesses. On the other hand, a crypto mining pool BTC.TOP announced it would be halting its business citing regulatory risks in China, while HashCow, a crypto miner, suspended the purchase of its new bitcoin mining rigs.
Crypto mining requires special-designed computer equipment with powerful CPUs known as rigs to authenticate virtual coin transactions and creating fresh digital assets in the process such as Bitcoin. Chief investment officer of Novem Arcae Technologies in Bejing, Chen Jiahe stated crypto mining is a process that consumes plenty of energy which contradicts the carbon neutrality goals of China. He stated the Bejing crackdown on crypto mines was curb crypto trading operations.
Bitcoin took a massive hit from the crackdown and has plunged to 50% losing 17% on Sunday and is currently trading at a steady pace in Asia. Ethereum dropped to 60% from its high record in 12 days.
Money laundering and investor protection are the primary concerns of global financial regulators on regulating the crypto industry. The recent crackdown on digital assets started in the United States when Jerome Powell, the chairman of Federal Reserved stated digital currencies pose tax evasion risks and financial stability.
