China’s increased crypto mining clampdown has seen the preeminent crypto token by market cap, BTC, plunging by over 10% on Monday.
Beijing has been banning crypto mining activities in the region as the nation aims to go green. Keep in mind that China has been a leading crypto mining hub for years, accounting for over 75% of global Bitcoin mining. However, several provinces had to suspend crypto mining activities as China employed stiff regulations on the sector.
Over the last week, Sichuan regulators ordered 26 crypto mining firms to stop operating in the region. A former BTC miner confirmed the reports after they circulated on various social media platforms in China.
With the negativity in the market, BTC dropped to $32,309 at some point. The leading asset has been struggling in the recent weeks, even after a record high of around $65000 in April. As much as various factors contributed to the current crypto market conditions, Beijing’s clampdowns played a vital part.
The recent notice by the regulators instructed electricity firms to suspend power supplies to crypto mines by Sunday.
Also, local governments were supposed to investigate and shut down businesses related to crypto mining.
Keep in mind that Sichuan is among the leading cryptocurrency mining hubs in China.
A former digital miner told AFP (Agence France-Presse) that his firm has to close its doors following the recent mining regulation in China. The miner said that regulators visit to ensure that the firm no longer operates and moved the machines out of the nation.
Sichuan attracted crypto mines with its cheap and plenty of hydropower. Global Times revealed that the crypto mining ban in the province resulted in the shutting down of over 90% of crypto mining activities in the area.
Keep in mind that Beijing has cited financial risks and environmental impacts as its concern on crypto dealings.
Chinese sources informed that crypto mines had their electricity supply terminated at midnight on Sunday.
China has extended its effort to curb crypto mining in other crypto-associated provinces like Qinghai, Inner Mongolia, and Xinjiang.
What do you think about the nature of the crypto market in China after the recent stiff crypto clampdowns? Comment in the section below.