China Warns State-Owned Companies about Dealing with Crypto Mining

China Warns State-Owned Companies about Dealing with Crypto Mining

The Chinese government is again making the headlines in the cryptocurrency sphere as it warned state-owned companies not to deal with crypto mining. According to BNN Bloomberg, the authorities threatened to impose punitive measures if the firms were involved in the Bitcoin (BTC) mining business.

The plan is part of the National Development and Reform Commission, the media outlet noted. A meeting was held last week and aimed to strengthen its latest crackdown announcement on banning crypto-related activities in the Asian giant. However, Meng Wei, a spokeswoman for the nation’s chief economic planner, clarified that the measure is also extended to private firms.

The Central Commission for Discipline Inspection recently expelled Xiao Yi, a former Jiangxi provincial official, for violations, including supporting digital assets mining. He was accused of abusing his power to perform such activities that the Chinese government now considers ‘illicit activities.’

Suggested articles

Everything Has Changed in 2021Go to article >>

The announcement comes in the midst of the recent sell-off witnessed by Bitcoin, which plummeted across the board below $62,000, and now it’s treading waters around the $60,000 neighborhood, looking for demand.

The US as the Dominant Force in the Bitcoin Mining

As reported by Finance Magnates, a study from the UK Cambridge Centre for Alternative Finance revealed that the United States is now a heavyweight country in the Bitcoin (BTC) mining industry, surpassing China. The figures are not surprising, considering the recent Chinese government’s crackdown on the crypto sector.

China’s current hash rate had plummeted to zero levels by July from 44% in May to 75% in 2019, said the Cambridge Centre for Alternative Finance. That said, the study confirms how the miners are shifting their eyes towards North America, as the US accounts for 35.4% of the global hash rate as of the end of August, followed by Kazakhstan and Russia. Chinese miners are moving their operations to Central Asia countries due to its crypto mining-friendly environment in terms of regulatory frameworks.