China hasn’t finished its crypto mining crackdown just yet – Cointelegraph
China appears ready to declare victory in its war on crypto miners – and may be preparing for a coup to ban Bitcoin mining (BTC) from its shores once and for all. However, it appears that China has not been able to end its crackdown on mining as planned.
China hasn’t finished cracking down on crypto mining yet
According to a report in the Economic Times – republished by People’s Daily, China’s state mouthpiece – many miners are taking a “wait and see” approach and have yet to move abroad to resume operations.
However, the report’s author also noted that the lack of strict regulation of cryptocurrencies by countries such as Canada, Russia and Kazakhstan is proving increasingly attractive to many miners.
And commentators warn that the crypto crackdown in China is far from over.
Despite recent de facto industrial mining bans in some traditional hotspots, as well as crackdown on banking and electronic payments, Beijing may be planning new measures.
Even as the crackdown continues, commentators have said Beijing wants to close regulatory loopholes and fix legislative issues so miners can continue to collect tokens across platforms. In-person and over-the-counter (OTC) cryptocurrency transactions are still legal, as is ownership of cryptocurrencies. Beijing has not yet taken concrete steps to ban miners from using clean energy sources – although many miners recently ordered shops to close in areas like Sichuan. Xuyen mainly uses hydropower.
Dong Ximiao, chief researcher at Zhaolian Finance and supervisor of the School of Finance at Zhongnan University of Economics and Law, said Beijing’s first explicit call for crackdown on bitcoin mining and transaction banking was a truly surefire move. The researcher also added:
“It is assumed that there will be further action soon. With stronger and more targeted surveillance measures, the rules will only get stricter. You (the miners) will not be relaxed. “
The media added that the government has apparently moved to block major search engines and social media platforms displaying results associated with major exchanges originating in China. That means searches like Huobi and Binance won’t return any results on platforms like Baidu and Weibo.
Even so, the media reports that some miners seem to be living in hope. Unacceptable relocation costs and the uncertain regulatory landscape in the countries they are moving to make many people uncomfortable. “Some miners have placed their hopes on the implementation of the guidelines” [lỏng lẻo] in different places, ”remarked the author. “If these guidelines are implemented loosely, there is still a chance they will survive.”
But Dong Ximiao claims that Beijing’s “next step” may disappoint those hopes as it “should correct its legal deficiencies as soon as possible to make surveillance effective” and prevent exploitation “.
China plans to radically reduce its carbon emissions as early as 2030, and Beijing has reiterated its claim that China will be carbon neutral by 2060.
Meanwhile, the China Times reported that “smaller” hydropower plants (rated at 50,000 kW or less) in Sichuan, Yunnan, Gansu and Guanxi provinces have started to feel the repression. Many of these stations have relied heavily on custom cryptocurrency miners over the past few years.
A Sichuan hydropower plant owner claims to have made “millions” selling electricity to Bitcoin miners – a source of income that has now been cut off, forcing some owners to try to sell their station.
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