After Beijing stepped up its efforts to crack down on Bitcoin mining and trading and pushed the digital currency to plummet, cryptocurrency mining operators including Huobi Mall and BTC.TOP are suspending their operations in China.

The State Council led by Vice Premier Liu He announced the crackdown late Friday. This is the first time the committee has targeted virtual currency mining, a large Chinese company that accounts for 70% of the global cryptocurrency supply.

Crypto miners use increasingly powerful, specially designed computer equipment or drilling rigs to verify the process of virtual coin transactions, which will generate newly minted cryptocurrencies, such as Bitcoin (price in India).

After China’s latest move, Bitcoin has been hit hard and has now fallen by nearly 50% from a historical high. The decline was as high as 17% on Sunday, and some losses were made up afterwards. For the last time, trading was stable in Asia.

Investor protection and prevention of money laundering are issues of particular concern to the government and financial regulators, who are working hard to decide whether and how to regulate the cryptocurrency industry.

Federal Reserve Chairman Jerome Powell (Jerome Powell) increased its focus on cryptocurrencies last week. Powell said on Thursday that they pose a risk to financial stability and that it may require stricter supervision of the increasingly popular electronic money.

Huobi Mall, a part of Huobi Mall, said in a statement later on Sunday that all its custodial services have been suspended.

Huobi Mall stated through its official Telegram community: “At the same time, we are liaising with overseas service providers to pave the way for future export of mining machines.” Huobi Mall stated in its official Telegram community and asked customers to “don’t worry about it.” And calm.”

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The crypto mining pool BTC.TOP also announced the suspension of its Chinese business due to regulatory risks.

The founder Jiang Zhuoer stated on Weibo’s Weibo that in the future, BTC.TOP will mainly carry out cryptocurrency mining business in North America.

He wrote: “In the long run, as Chinese regulators crack down on domestic mining, almost all Chinese crypto mining equipment will be sold overseas.”

After Beijing banned cryptocurrency exchanges in 2017, China has lost its status as a global cryptocurrency trading center.

Jiang Zemin predicts that the number of mines in the United States and Europe will increase, “Ultimately, China will also lose its encrypted computing power in foreign markets.”

Another cryptocurrency miner, HashCow, owns 10 mining sites in Chinese provinces such as Xinjiang and Sichuan, and sells computing power to investors. The company said it will fully comply with government regulations.

In a statement to customers, HashCow stated that it will suspend the purchase of new bitcoin rigs and promised to refund all investors who have placed orders for computing power have not yet started mining.

Thomson Reuters 2021 ©

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