As China is showing a move to ban mining beyond the issuance and trading of cryptocurrencies (virtual currency) including bitcoin, there is a high possibility that bitcoin will plunge again.
The previous day, cryptocurrencies such as bitcoin plunged as China once again emphasized banning cryptocurrency transactions. This is because other countries are also concerned with tightening related regulations following China.
According to the economic media, Chaishin, etc. on the 20th, the Neimenggu Autonomous Region in northern China started operating a cryptocurrency mining report network from the 18th.
The Neimungo Autonomous Region aims to completely eliminate cryptocurrency mining companies in the region, as this measure aims to achieve the national energy saving goal.
The reporting targets included not only cryptocurrency mining companies, but also companies that provide land and various services to mining companies.
According to the University of Cambridge in the UK, 65.08% of the world’s bitcoin mining was done in China as of last year.
In particular, large mining rigs are concentrated in Xinjiang Uighur Autonomous Region and Neimong Autonomous Region, where the climate is cool, electricity bills are relatively cheap, and labor costs are also low. This is where full-scale crackdowns are starting.
China has already banned cryptocurrency issuance and trading in 2017. However, it did not prohibit mining. Such China is making a move to eliminate miners for energy savings.
The previous day, cryptocurrency plunged at once due to the news of China’s tightening crackdown. The People’s Bank, the central bank of China, warned on Weibo on the 18th that “cryptocurrency is not used in real life at all”, and institutional organizations such as China’s Bank Federation issued a statement at once and launched a campaign to ban cryptocurrency transactions such as bitcoin. have.
In particular, the People’s Bank warned that it would be punished if it was found that it was illegal to trade cryptocurrencies as well as derivatives.
The Financial Times (FT) of the UK analyzed that the cryptocurrency plunged as Chinese authorities declared another crackdown on cryptocurrency, maximizing fear that regulatory authorities in each country would follow China and significantly strengthen related regulations.
