China has banned bitcoin
Inside a Bitcoin mining factory Photo: AFP Many Bitcoin mines in Southwest China's Sichuan Province - one of China's largest cryptocurrency mining bases - were closed as of Sunday, after local authorities ordered a halt to mining in the region on Friday amid an intensified nationwide crackdown against cryptocurrency mining. The ban also means that more than 90 percent of China's Bitcoin mining capacity is estimated to be shut down, at least for the short term, as regulators in other key mining hubs in China's north and southwest regions have taken similar harsh steps. Some industry players had hoped that regulators in Sichuan, where hydropower is abundant, could take a softer approach. But the latest ban underscores Chinese regulators' determination to curb speculative crypto trading to control financial risks, despite certain benefits to local economies, observers said. The Sichuan Provincial Development and Reform Commission and the Sichuan Energy Bureau issued a joint notice on Friday, ordering local electricity companies to "screen, clean up and terminate" mining operations by Sunday. The notice also ordered local electricity companies to immediately stop supplying power to crypto mining projects they have detected, and conduct self-inspection and rectification, and report their results by Friday.
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- Now that China has all but banned cryptocurrencies, GPU prices are falling like Bitcoin
- Bitcoin tumbles below $39,000 after China issues warning
- Why Did China Ban Bitcoin Mining? Here Are The Seven Leading Theories
- China declares all crypto-currency transactions illegal
- China bans cryptocurrency-related short videos on various social platforms
- China bans all cryptocurrency
- Will China’s Ban Hurt Cryptocurrencies?
Now that China has all but banned cryptocurrencies, GPU prices are falling like Bitcoin
In a July article written for Fortune magazine, journalist Sophie Mellor wrote that if China were to eliminate cryptocurrency mining, it would eliminate half of the total energy dedicated to mining cryptocurrency. Because these firms were forced to downsize and move their operations abroad, there is no longer a potential for government intervention in the blockchain. If other countries decide to prohibit cryptocurrency mining, we could see a massive decrease in the hash power available to all cryptocurrencies, including Bitcoin.
Proof-of-work is a method of verification for miners to assist in the minting of more cryptocurrency by providing computing power to the blockchain. In the upcoming years, we are bound to see more countries ban cryptocurrency mining — India and Japan have already been debating these issues for months.
This is why proof-of-stake will be all the more important in a blockchain-based future. Not only do PoS blockchains like Ethereum remove the danger of consuming too much energy — or any significant amount of energy at all — to be superior to the existing banking system, which uses Governments intrinsically cannot and should not support cryptocurrencies, as cryptocurrencies are designed to counteract the oppressive and sometimes even undemocratic behavior of central authorities like the Federal Reserve.
Therefore, governments will naturally do what they can to halt the rise of cryptocurrency in our daily lives, including prohibiting the mining of cryptocurrencies. Bitcoin will be target No. Only the future can tell whether Bitcoin will be the MySpace of crypto or be able to evolve to survive. For now, though, I encourage you to read up on Ethereum and other proof-of-stake projects.
Cryptocurrencies are here to stay. The hostility shown by the Chinese government is an attempt to control and catch up. They are behind and want to shift the pendulum in their favor.
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Bitcoin tumbles below $39,000 after China issues warning
China's latest regulations on cryptocurrencies aim to eliminate competition with Beijing's new digital currency, the digital yuan, an expert told Anadolu Agency on Friday. China's central bank, the People's Bank of China, announced last week that it will tighten regulations on cryptocurrency activities, including trading and mining, as the government intensifies its crackdown on digital coins. Its regulations on the crypto market include prohibiting trading, token issuance and crypto derivatives, considering overseas crypto exchanges, which offer services to domestic residents in China, an illegal activity, and banning financial institutions, non-bank payment companies and internet firms from facilitating crypto trading. Lesperance argued that China wants to have complete control over its population, and the digital yuan, combined with currency control in China, will give Beijing total vision over the population and all their financial transactions. After Beijing tightening regulations, cryptocurrency holders in China have some options — they can either get their crypto assets outside of the country or wait for the government to offer a swap for their crypto assets in exchange for digital yuan.
Why Did China Ban Bitcoin Mining? Here Are The Seven Leading Theories
This primer explains the notice and what it means for the future of virtual currencies. PBOC says that in recent years, transactions in virtual currencies such as Bitcoin have risen significantly. China has deemed these transactions as not just a risk to private property but also national security and social stability. This has led PBOC along with many Chinese regulatory bodies to pass a notice for cleanup and rectification in this space. The notice said that all privately issued virtual currencies are not legal tender and cannot be used as a currency in China. All the banks, financial institutions, non-banks etc cannot open bank accounts, transfer funds for virtual currency-related activities. The notice has also barred overseas exchanges to provide virtual currency-related information to Chinese residents. Even Chinese residents who work for such overseas exchanges via the internet have to stop working for such organisations. Internet companies cannot promote or advertise virtual currency-related business. Given the wide usage of virtual currencies across financial instruments, this is not about PBOC alone.
China declares all crypto-currency transactions illegal
It comes amid preparations for an economic slowdown, with fears about property giant Evergrande going bust and people wanting to move their money out of China. Technology reporter AlexMartin. The People's Bank of China PBoC has announced that all cryptocurrency-related financial activities are illegal, including transactions, providing pricing services, and launching new tokens. According to a notice published on the central bank's website, it will be illegal for Chinese residents to purchase cryptocurrencies from overseas and even be involved in marketing or technical support relating to crypto businesses.
China bans cryptocurrency-related short videos on various social platforms
The move is the latest in a series of measures aimed at curbing the use of cryptocurrencies that goes back years. Trading in cryptocurrencies has been banned in China since , but it has continued online through foreign exchanges. In May , financial institutions and payment companies were prohibited from providing services related to cryptocurrencies , bolstering similar bans issued in and On one level, it is unsurprising that an authoritarian government would feel uncomfortable with any decentralized, non-sovereign currency that bakes in both encryption and—at least superficially—a promise of anonymity. Cryptocurrencies, of which Bitcoin is the best-known example and has the highest market share, are non-fiat-based currencies. They are not officially categorized as money, because they are typically not backed by states, nor are they linked to gold, silver or some other convertible peg of value.
China bans all cryptocurrency
On the other, the network kept working without a hiccup, recovered its hashrate in record time, and gained in decentralization. However, a question remains. Why did China exclude itself from this very lucrative activity in which they were dominating? To help our audience solve the puzzle, NewsBTC decided to gather all of our theories in a single post. This one is as straightforward as it gets.
Will China’s Ban Hurt Cryptocurrencies?
Russia may ban crypto mining and investment amid fears that it could compromise financial stability in the country. Under the proposals, financial institutions in Russia would be blocked from making any crypto transactions, including buying and selling of crypto for fiat currency. Russia has long feared the prevalence of crypto could exacerbate criminal activity such as money laundering or the financing of terrorism. The new proposals would bring in a blanket ban, including crypto exchanges. Crypto trading has been illegal in China since but stricter rules were introduced in
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His exchange, BTCC, had occupied a gray area of Chinese law, neither licensed nor explicitly illegal. Bitcoin is a decentralized digital currency that can be sent electronically around the world, and its growing popularity made Chinese authorities nervous. In , most Bitcoin trades worldwide were in Chinese yuan. In September, China announced that it was banning initial coin offerings ICOs , a popular fund-raising method for startups that use digital coins or tokens.