HomeBitcoin MiningChina Says It Will Place Limits on BTC Mining; Price Suffers

China Says It Will Place Limits on BTC Mining; Price Suffers

Date:

Related stories

BTC Can Hit $100,000 Soon and $150,000 If Trump Wins, Predicts Standard Chartered

Standard Chartered, the British financial institution, claims bitcoin can...

BTC Falls Below $70,000, Triggered by Massive Selloff

As the crypto community awaited BTC to push past...
spot_imgspot_img

Bitcoin’s price has fallen once again following news from China. The Asian country says its regulatory authorities will begin cracking down on all mining and trading activities.

China Seeks to Limit Trading and Mining

The country has always had a rather up and down relationship with the world’s number one digital currency by market cap. At one point, there was more bitcoin activity occurring within China’s borders than any other region. China is also home to both Bitmain and Canaan Creative – two of the world’s largest crypto mining firms.

However, things took a real ugly turn about four years ago when China said that it would be banning all initial coin offerings (ICOs), claiming that they were illegal and fraudulent. From there came a ban on all digital currency exchanges, prompting many companies to move elsewhere and now, with this new crackdown on mining and trading in general, it is hard to say if China is going to lose its top spot as a bitcoin and crypto haven.

Financial authorities are claiming that crypto is far too risky for traders. These maneuvers are designed to eliminate said risks and keep potential users protected. In a statement, they mention:

It is necessary to maintain the smooth operation of the stock, debt and foreign exchange markets, severely crack down on illegal securities activities and severely punish illegal financial activities.

At first glance, it looks like bitcoin cannot catch a break as of late. The currency has been on a downward spiral for the past two weeks following news that Tesla would not be accepting bitcoin payments after all. From there, Elon Musk – the company’s CEO – hinted on Twitter that he would potentially be selling his personal stash of BTC, which prompted another major drop for the digital asset.

Now, with this latest news from China, bitcoin has fallen to about $36,000 per unit – its lowest point in months. However, while bitcoin looks like it may be suffering substantially at the time of writing, it can be argued that China stands to lose a lot more from this action than bitcoin traders do.

This Is Going to Hurt the Country

As mentioned, China is home to Bitmain and Canaan Creative. With a hardcore crackdown on mining, these companies are likely to suffer… Which means less income… Which means less taxes towards China’s economy and infrastructure, and the country in many ways is still reeling from the tariffs of the previous U.S. administration.

In addition, China is home to most of the world’s bitcoin mining operations. It is estimated that close to three quarters of the globe’s bitcoin mining projects are centered in China. If the country is looking to shut down mining for good, these companies will have no choice but to travel elsewhere, which is going to result in less profit for China either through reduced taxation – granted these operations are legal – or nonpayment of energy bills.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

spot_img