Chinese Restrictions on The Operation of Cryptocurrencies and Mining In 2021, China's mining process and Bitcoin's price were not threatened. Everything was quiet until mid-May when Chinese authorities dealt a few blows to the crypto market. As the CEO of cryptocurrency exchange , based in Malta, I would like to tell about the state of the Chinese mining market and the challenges that mining companies will face in the near future. Kyrrex China's Vice Premier Liu He's tightened up the cryptocurrency and mining market pushed Bitcoin into another slump on May 21, 2021. It began to bring many companies back to the reality in which Bitcoin will not be worth $200K by the end of next year. announcement In just two hours, the first digital currency plummeted to $36K. Moreover, Chinese companies that provide data center, cloud, and telecommunications services can lose their licenses if authorities find out about their involvement in cryptocurrency mining. On May 19, Chinese authorities imposed on financial institutions to provide services in the cryptocurrency market. So they lost the right to issue products based on cryptocurrencies, conduct transactions, and provide services for their management. a total ban Four years ago, the Chinese authorities already made a similar attempt to regulate the cryptocurrency market. At that time, it was forbidden for exchanges to operate in the country. Nevertheless, there are good reasons for Bitcoin's decline, and they include physical mining. These changes could be related to the Chinese Central Bank's lobbying for its electronic currency, in which the remains part of the banking system. To receive it, a citizen needs to have an account at one of the specified banks. electronic yuan Nevertheless, the events of June greatly overrode the shock therapy of May. Here are some of them, which on my mind were the most important: At the beginning of June, Weibo users experienced administrative restrictions on access to several major cryptocurrency accounts with the note: "It violates laws and regulations.” In addition, the accounts of opinion leaders and bloggers related to cryptocurrencies . Thus, gradually, mining and circulation of cryptocurrencies and even news on the topic are banned. The Chinese government the mining of digital assets in Sichuan, Yunnan, Qinghai, and Xinjiang provinces. It led to a huge drop in the price of not only Bitcoin to $30K-$32K and many other cryptocurrencies. The People's Bank of China with the five largest banks in the country and with the service on the prohibition of any financial transactions with cryptocurrencies. Many companies operating in the Chinese market are rushing to their mining assemblies, offering a 30% discount. Others are preparing to move to other countries, such as the U.S., Canada, Latin America. were also restricted has banned held a conversation Alipay sell I’m sure that such shock therapy was bound to pass. For too long, China has taken the lead in mining, leaving North America, Russia, Kazakhstan, and other countries far behind. It seems that China has decided to limit its influence on the global economy. The companies that survive China's shock therapy will never go back. How Do Restrictions Affect The Mining Business? The University of Cambridge, in its on the state of mining in the world and China, noted that Chinese mining operators account for 65.08% of the global volume of a mined cryptocurrency. However, the world does not stand still, and many important events have occurred over the past two months. report Here are some of the most significant ones: The market responded to the May events with two falls with a significant correction, during which the Whales bought 77,000 bitcoins worth more than $3 billion. Bitmain has decided to for new builds. However, old pre-orders will be delivered unchanged. The reason was the over-saturated secondary equipment market amid the ban on mining in China. suspend taking orders At the same time, 15 banks in India are forming , Indian Banks' Blockchain Infrastructure Co. (IBBIC). The U-turn by Indian authorities and the Central Bank could become a landmark event in the Asian mining and cryptocurrency financial services market. The banks' belief in blockchain technology will only fuel interest in crypto-assets. a blockchain consortium El Salvador to make Bitcoin legal tender. The country needs to show the world the potential and possibilities of the first cryptocurrency as a payment method. The government expects that opening the country to Bitcoin will allow people to invest more in the country's economy. has decided Another market began in Argentina because of the affordable price of electricity, with a target for the current Bitcoin price around $30-$32K. boom in the crypto-mining Opinions of the crypto community are divided. For instance, some investors are still that buying Bitcoin at any price is a good idea. Others are waiting for Bitcoin's price to toward a new limit of $20,000. filled with optimism start falling ( : ) Disclaimer The author of this story is the CEO at Kyrrex Exchange

Target

How are people scammed in a crypto world

For getting a positive experience of trading or exchanging, we welcome you to Kyrrex platform. 

Nominated for 2022 - HackerNoon Contributor of the Year - Founders

Nominated for 2022 - HackerNoon Contributor of the Year - Regulation

Nominated for 2022 - HackerNoon Contributor of the Year - Future Of Finance

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Trading

Nominated for 2022 - HackerNoon Contributor of the Year - Fintech

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Adoption

Nominated for 2022 - HackerNoon Contributor of the Year - Founder Stories

Nominated for 2022 - HackerNoon Contributor of the Year - Bitcoin

Too Long; Didn't Read

CTA: Download the FREE AI Productivity Shift report

Can China Force Bitcoin Price to Fall Below $20,000?

Can China Force Bitcoin Price to Fall Below $20,000?

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

Crypto Industry In 2023: What to Expect

06/02/2018: Biggest Stories in the Cryptosphere

06/09/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

Crypto Industry In 2023: What to Expect

06/02/2018: Biggest Stories in the Cryptosphere

06/09/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

0 to Pro Crypto Trader: Your Ultimate Guide to Bitcoin and Altcoin Investing

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps