Bitcoin falls as Chinese regulator intervenes in cryptocurrency mining

According to the latest news, in China, cryptocurrency services like Huobi Mall and BTC.TOP are suspending their operations in the region. Chinese local government has ramped up its efforts to crack down on Bitcoin mining and trading causing chaos all over the digital currency ecosystem.

IndianExpress reported that a State Council committee led by Vice Premier Lio announced the ban earlier this month. This was the first time that the council targeted virtual currency mining. Note that crypto mining is a major business in China. China accounts for as much as 70 per cent of the world’s crypto supply.

When the news became public Bitcoin took a major hit. It fell nearly 50 per cent from its all-time high value. Just a month ago, back in April, it touched its all-time high of around 64,895 US Dollars.

Bitcoin falls as Chinese regulator intervenes in cryptocurrency mining
Bitcoin falls as Chinese regulator intervenes in cryptocurrency mining

In an official statement, Huobi Mall announced it is going to suspend all of its custody businesses in China for the time being. The statement was shared via Telegram to its core community. However, it also said, that it is currently contacting its overseas service providers so clients should not worry and calm down.

In a similar fashion, BTC.TOP announced the suspension of its Chinese business due to the regulatory risks. Its founder Jiang Zhuoer said, “In the long term, nearly all of Chinese crypto mining rigs will be sold overseas, as Chinese regulators crackdown on mining at home.”

It is worth mention that in 2017, China had lost its position as a global cryptocurrency trading centre due to a ban in Beijing. Zhuoer believes that “Eventually, China will lose crypto computing power to foreign markets as well.”

Maria Janulis
Maria is a Florida-based columnist, working in the Journalism industry for the last five and a half years. She spends most of her time interacting with the like-minded group of people on social media.