Cryptocurrency mining operators, including Huobi Mall and BTC.TOP, have shut down in China after Beijing stepped up its efforts to crack down on bitcoin mining and trading, causing a sharp drop in cryptocurrency, Reuters reported.
A State Council committee chaired by Deputy Prime Minister Liu Ha announced the crackdown late Friday night. For the first time, the Council of State opposes the extraction of virtual currencies, which is a significant activity in China, reaching 70 percent of the global supply of cryptocurrencies.
Bitcoin has been hit hard by these measures in Beijing and has now lost nearly 50 percent from its all-time high since April. Yesterday, bitcoin fell by up to 17 percent, then reduced losses and stabilized in Asia.
The Hobby Mall, which is part of the Hobby cryptocurrency trading, said in a statement late last night that all its shifts had been suspended.
“In the meantime, we are contacting service providers abroad to find a way to export mining platforms in the future,” the Hobby Mall said through its official Telegram community and asked its customers not to worry. calm down.
BTC.TOP – a pool for digging cryptocurrencies – also announced the suspension of its activities in China, citing regulatory risks. Its founder, Jiang Zhoezh, said in a blog in Weibo that in the future, BTC.TOP will mainly carry out cryptocurrency mining activities in North America.
“In the long run, almost all Chinese cryptocurrency digging devices will be sold abroad as Chinese regulators repress domestic digging,” he said.
China has already lost its position as a global center for cryptocurrency trading after Beijing banned cryptocurrency trading in 2017.
“China will eventually lose the computational power of calculating cryptocurrencies in favor of foreign markets,” Jiang said, predicting the strengthening of US and European cryptocurrency pools.
Cryptocurrency diggers are increasingly using rigs designed to target computer hardware to verify virtual coin transactions in a process that produces new issues of cryptocurrencies such as bitcoin.
HashCow, another cryptocurrency maker that owns 10 mines in Chinese provinces, including Xinjiang and Sichuan, and sells computing power to investors, said it is fully compliant with government regulations.
In a statement to its customers, HashCow said it would temporarily suspend the purchase of new bitcoin platforms and promised full compensation to investors who had placed orders for computing power but had not yet begun digging.
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