China is planning to impose anti-crypto mining legislation, citing environmental concerns
Cryptocurrencies, according to Chinese officials, disturb economic order by facilitating unlawful asset transfers and money laundering.
Chinese authorities are adopting severe measures to put an end to cryptocurrency mining, which they describe as a “very hazardous” industry that jeopardises the country’s attempts to cut carbon emissions. This comes after China’s central bank declared all cryptocurrency-related transactions, including crypto trading and mining, to be banned.
According to a Bloomberg storey, China has warned its government firms to stop mining cryptocurrency and has threatened to boost electricity bills for any institution discovered to be using subsidised power to mine cryptocurrency.
At a news briefing, Meng Wei, a spokeswoman for the National Development and Reform Commission (NDRC), said, “The National Development and Reform Commission (NDRC) wants to crack down on industrial-scale Bitcoin mining as well as any engagement by state firms.” She went on to say that crypto mining and trading came with “significant dangers,” and she slammed the crypto business as “blind and disorderly.”
Cryptocurrencies, according to Chinese officials, disturb economic order by facilitating unlawful asset transfers and money laundering. Cryptocurrency miners are being blamed by officials for everything from energy waste to deadly coal mining accidents, as well as posing a danger to the country’s efforts to cut carbon emissions. By 2060, the country wants to be carbon neutral.
It’s worth noting that mining Bitcoin or any other cryptocurrency necessitates high-powered computers vying to solve complicated mathematical riddles in a process that consumes a lot of electricity. According to a Reuter’s article, costs of mining rigs have also dropped since China implemented the ban—one crypto mining machine that sold for roughly 4,000 yuan ($620) in April and May may now be purchased for as little as 700-800 yuan.
According to a study published in April in the peer-reviewed journal Nature Communications, China accounts for more than 75% of Bitcoin mining. According to data provided by the University of Cambridge’s Centre for Alternative Finance, the country went from controlling up to 75% of all Bitcoin mining in the globe in April to barely contributing to the industry at all by July 2021.
Meanwhile, according to coin gecko, the price of Bitcoin fell about 5% to $60,971.56 today, and the price of Ether fell as much as 6%.
