The Romance Between China And Bitcoin Is Over

The Chinese government has strictly warned companies that are still trying to mine.

This year, the Chinese government began a real hunt for bitcoin mining companies. Bitcoin is a cryptocurrency that China cannot directly control, which is incompatible with the country's governance model and the digital yuan plan. Therefore, it is not surprising that the crypto-mining industry has recently overtaken brutal repression.

It seems that not everyone took the ban seriously, continue their activities in the hope of not clear for what. In this regard, the Chinese government issued a stern warning to companies that continue to mine cryptocurrencies.

The National Development and Reform Commission plans to comprehensively restrict industrial-scale Bitcoin mining and put an end to any interference by state-owned enterprises in the industry. Companies that fail to comply with this rule may face high fines and other restrictions.

It seems that China is not only concerned about the monopoly of digital assets, but also about the limited bandwidth of its energy network. The Chinese authorities are concerned that the mining of bitcoins and other cryptocurrencies is consuming too much power, leading to a shortage of energy in the country in winter.

That is why the country's authorities have begun a real hunt for individuals and companies who are ignoring the new rules and are still mining bitcoins. For example, last week it was reported that a government official was removed from his post after it was found that he was illegally mining virtual currency.

Xiao Yi has supported mining and other companies. This shows that not everyone in China agrees with the country's new government policy. Taking a look into the past, we can conclude that the ban on bitcoin and cryptocurrency mining in China can become one of the main, both economic and geopolitical mistakes.

Many big bitcoin companies such as Huobi, Binance, and Bitmain have left China in search of jurisdictions more friendly to cryptocurrencies and mining. This event led to the fact that the Chinese government and the state as a whole missed out on a lot of tax revenues, and as the industry develops, this chasm in economic terms will only widen.

China has practically left not only exchanges and manufacturers of mining machines, but also the miners themselves. Most of the mining industry is now settled in the United States, which to one degree or another is damaging, both economic and image of the Chinese government. With increased internal oversight of the crypto industry, rumors that the Chinese government will change its stance on the industry seem to be just rumors. 

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