China’s restrictions on cryptocurrency mining continue to expand. CoinDesk today Report Due to the policies of the central government, the authorities in Anhui, Gansu and Henan provinces ordered the closure of local mining operations.
There are two official motives behind this crackdown. The first is that China hopes to be carbon neutral within five years. Closing the cryptocurrency mining business is a quick way to reduce energy use, at least in the short term. (Although switch to clean energy Can help achieve the same result. )
The second motivation is finance: the People’s Bank of China June said It is believed that cryptocurrency “disrupts the normal economic and financial order, breeds the risks of illegal cross-border asset transfers, money laundering and other illegal and criminal activities, and seriously infringes the safety of the people’s property”.
Regardless of the reasoning, the reality is that China has been actively shutting down cryptocurrency mining operations in the past few months.Inner Mongolia is the first batch Crack down on mining, Then it joined Qinghai Province, Xinjiang Province and Sichuan Province followed closely behind.
These restrictions have had a huge impact on the crypto market.Bitcoin price from Historical high From approximately US$64,000 established in April to approximately US$32,000 at the time of writing. (And it Below 30,000 USD During this period. ) China’s restrictions cannot All responsibilities For this decline, they played an important role in it.
Bitcoin’s hash rate, which is essentially the computing power used to mine cryptocurrencies, also plummeted from 180.66 million tera hashes per second (THps) on May 13 to 84.79 million tera hashes on July 2. Take internet for a year Achieve the same hash rate without the contribution of Chinese miners.
Now, more cryptocurrency mining operations are being closed across China. At this rate, it seems only a matter of time before all provinces in the country follow the seven regions to shut down any miners they find.