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Author: Admin | 2025-04-28
Bitcoin mining rigs are manufactured in China. Also, more than half of the world’s bitcoin mining power was domiciled in China because operators had access to cheap electricity. Although the NDRC eventually omitted bitcoin mining from its final draft after much deliberation, the entire episode was the first hint of things to come.2020: Enforcement ramps upFor the better part of 2020, the Chinese government tightened its grip on crypto exchange activities within its borders amid an ongoing campaign to crack down on money laundering and fraud. In August, the PBoC revealed its intention to block over 100 foreign websites offering crypto exchange services.2021: China bans crypto trading and miningThe Chinese crypto industry’s problems in 2021 began in May when the State Council doubled down on past crypto policies by calling for the restriction of crypto mining and trading. Before this, the provincial authorities of Inner Mongolia, Xinjiang and Sichuan provinces, which were all major bitcoin mining hubs, had begun to introduce policies that stifled the operations of bitcoin miners.Following the statement from the State Council, provincial governments began to take proactive measures to eradicate crypto mining. Regulators cited bitcoin’s energy-intensive nature and how it poses a threat to the country’s environmental goals as its core reasons for justifying the new crackdown.Much like the impact of the crypto exchange crackdown in 2017, bitcoin miners were either forced to shut down permanently or move to other crypto-friendly countries. Because around 50% of the world’s bitcoin mining power was generated in China before
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