China’s largest cryptocurrency exchange, Huobi, suspended both crypto mining and some trading services for new clients from mainland China on Monday, according to Reauters.
In addition, large mining companies BTC.TOP and HashCow have completely or partially stopped their operations in China amid tightening of the legislation. This happened after Beijing imposed a ban on the mining and trading of cryptocurrency. BTC.TOP announced the suspension of its business in China, citing regulatory risks, while HashCow said it will stop buying new Bitcoin mining stations.
The State Council Committee, headed by Vice Prime Minister Liu He, announced increased crackdown on bitcoin mining and trading late Friday as part of efforts to prevent financial risks. The source adds that virtual currency in China is a very large business, accounting for up to 70% of the world’s cryptocurrency supply, according to some estimates.
“Crypto mining uses a lot of energy, which goes against China’s carbon neutral goals,” said Chen Jiahe, chief investment officer for Novem Arcae Technologies’ family office in Beijing.
Over the past couple of weeks, bitcoin has fallen in price by almost 50% from its all-time high, yesterday it fell by 17%, but then corrected slightly. Now the price of one bitcoin is about $ 38,000.
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