China’s restrictions on cryptocurrency mining continue to grow.Today’s coin desk report Authorities in Anhui, Gansu, and Henan have ordered the closure of local mining operations under central government policy.
There are two official motives behind this crackdown. The first is China’s hope of becoming carbon-neutral within five years, and shutting down cryptocurrency mining operations is a quick way to reduce energy usage, at least in the short term. (However, Clean power supply It can help you achieve the same result. )
The second motive is finance: People’s Bank of China Said in June The cryptocurrency “disrupts normal economic and financial order, creates risks of illegal and criminal activity such as illegal cross-border asset transfers and money laundering, and seriously infringes on the security of people’s property. I will. “
For whatever reason, in reality, China has been aggressively shutting down cryptocurrency mining operations over the past few months.Inner Mongolia was one of the first regions Crack down on the mining industry, then You have to participate Qinghai, Xinjiang Uygur Autonomous Region, and Sichuan followed shortly thereafter.
These restrictions have had a significant impact on the crypto market.Bitcoin price is Best ever From about $ 64,000, which was founded in April, to about $ 32,000 at the time of writing. (and it is Below $ 30,000 Tentatively. ) China’s restrictions cannot be taken All responsibility Due to its decline, but they nevertheless played an important role in it.
Bitcoin’s hash rate, which is essentially the amount of computing power used to mine cryptocurrencies, also ranged from 180.66 million terahashes / second (THps) on May 13 to 8,479 on July 2. It plummeted to 10,000 THps. Take the network for a year Reach the same hash rate without the contribution of China-based miners.
Currently, more cryptocurrency mining operations are shut down across China. At this rate, it seems only a matter of time before all the states of the country follow seven regions and shut down the miners they find.
https://www.tomshardware.com/uk/news/china-crypto-crackdown-expands-three-more-provinces China’s crypto mining crackdown expands to three more states