Cryptocurrency miners, including HashCow and BTC.TOP, have halted their operations in China after authorities intensified a crackdown on bitcoin mining and trading. As reported earlier, a State Council committee led by Vice Premier Liu He had announced to crackdown late on Friday. This is the first time the council has targeted bitcoin mining. Noticeably, crypto mining is a big business in China that accounts for as much as 70% of the world’s crypto supply. The crackdown on crypto mining triggered bitcoin’s and other cryptocurrencies’ prices to plunge.
Bitcoin takes a fall following crypto mining crackdown news in China.
The price of the leading cryptocurrency bitcoin took a bearing after the latest Chinese move and is now down nearly 50% from its all-time high. Bitcoin shed as much as 17% over the weekend before paring some losses and was last trading steady in Asia. Elsewhere, Ether fell to a two-month low on Sunday, down 60% from a record peak hit just 12 days ago. Crackdown on cryptocurrency is not limited to China. Earlier, U.S. Federal Reserve Chairman Jerome Powell said cryptocurrencies pose risks to financial stability and indicating that greater regulation of the increasingly popular electronic currency may be warranted.
Crypto mining companies prepare to pull out of China.
Huobi Mall, a subsidiary of cryptocurrency exchange Huobi, said in a statement on Monday that it has suspended crypto-mining services to mainland Chinese clients and will focus on overseas businesses. BTC.TOP, a crypto mining pool, also announced the suspension of its China business, citing regulatory risks, while crypto miner HashCow said it would halt buying new bitcoin rigs. Earlier, Chen Jiahe, the chief investment officer of Beijing-based family office Novem Arcae Technologie, said that Crypto mining consumes a lot of energy, which runs counter to China’s carbon neutrality goals.