China prohibited all crypto activities, and now it extends the ban to the mining industry. Officials of the Chinese government look for different ways to pressure crypto mining.
On Friday, the Financial Stability Committee of the State Council held a meeting to discuss the cryptocurrency market in China. Liu He, China’s Vice Premier, stated the country’s stance against crypto mining and trading activities.
In the meeting records, Lui warns officials to be cautious concerning the potential risks. He recommends precautionary measures on bitcoin mining and trading activities to hamper the negative impact of the market on the entire society.
The steps against the crypto market started in the last weeks once the Chinese government, two payment associations, and the internet industry verified the crypto transactions associated with criminal activity. Such hostility has negatively affected the market and cryptocurrency values as Bitcoin prices have decreased to $37 000 from $41,000. The situation is not unique to Bitcoin. The entire market of digital currencies has downsized as expected.
On another critical note, despite the cryptocurrency exchange ban in China, the country remains to incorporate mining hubs. Indeed, China is one of the largest Bitcoin mining hubs in the world. It is not clear the extent and magnitude of the crypto industry. However, it is estimated that the shares of Chinese crypto mining float around 70 %. Some believe that the number has been on the decline after the growth of international markets attracting crypto miners.
Despite speculations and unclear numbers, it is evident that such cautions and pressures on the Chinese crypto mining industry will negatively affect the entire crypto industry.
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