In a recent report featured in the Wall Street Journal, Chinese authorities have extended an order to the country's mass of cryptocurrency miners and mining farms to halt their operations. The move is perhaps not entirely surprising as last week, both Reuters and Bloomberg reported that Chinese officials intended on limiting cryptocurrency mining operations’ electricity supply.
China has a unique history with cryptocurrency in the last year, especially since they implemented a blanket ban in September 2017. The country implemented several bans which prohibited citizens within the Chinese borders from launching or participating in initial coin offerings (ICOs), as well as prohibited any domestic cryptocurrency trading activity. The bans made an impact on the average global trading price, as the markets spiraled shortly after the bans were implemented. Since the crypto bans were implemented, rumors began circulating about the country’s intention to ban cryptocurrency mining.
At the time, the rumors were believed to be false. However, in a leaked memo dated January 2018, the Chinese government stated that all Chinese bitcoin miners should plan on making an orderly exit. The memo states that bitcoin miners use up a large portion of Chinese resources, such as electricity, and contributes to the highly speculative cryptocurrency industry. All Chinese miners have been issued a warning which stated that, while the exit will be gradual, they will have to make alternative arrangements by January 10th.
The memo was issued by the Leading Group of Internet Financial Risks Remediation, which is the same regulatory agency that instigated China’s original cryptocurrency bans. Strictly speaking, the regulating agency has no influence when it comes to the distribution and regulation of China’s electricity supply, however, according to TechCrunch, the organization is one of significant power and influence in the Chinese economic and political landscape. The organization is led by the People’s Bank of China’s deputy governor, Pan Gonsheng.
China has a unique history with cryptocurrency in the last year, especially since they implemented a blanket ban in September 2017. The country implemented several bans which prohibited citizens within the Chinese borders from launching or participating in initial coin offerings (ICOs), as well as prohibited any domestic cryptocurrency trading activity. The bans made an impact on the average global trading price, as the markets spiraled shortly after the bans were implemented. Since the crypto bans were implemented, rumors began circulating about the country’s intention to ban cryptocurrency mining.
At the time, the rumors were believed to be false. However, in a leaked memo dated January 2018, the Chinese government stated that all Chinese bitcoin miners should plan on making an orderly exit. The memo states that bitcoin miners use up a large portion of Chinese resources, such as electricity, and contributes to the highly speculative cryptocurrency industry. All Chinese miners have been issued a warning which stated that, while the exit will be gradual, they will have to make alternative arrangements by January 10th.
The memo was issued by the Leading Group of Internet Financial Risks Remediation, which is the same regulatory agency that instigated China’s original cryptocurrency bans. Strictly speaking, the regulating agency has no influence when it comes to the distribution and regulation of China’s electricity supply, however, according to TechCrunch, the organization is one of significant power and influence in the Chinese economic and political landscape. The organization is led by the People’s Bank of China’s deputy governor, Pan Gonsheng.