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BEIJING: Cryptocurrency miners, including HashCow and BTC.TOP, have halted their operations in China following crackdown on bitcoin trading and mining, hammering digital currencies amid heightened global regulatory scrutiny of them.
Cryptocurrency exchange Huobi today (Monday) suspended both crypto-mining and trading services to mainland Chinese clients. BTC.TOP, a crypto mining pool, also announced the suspension of its China business citing regulatory risks, while crypto miner HashCow said it would halt buying new bitcoin rigs.
Crypto miners use increasingly powerful, specially-designed computer equipment, or rigs, to verify virtual coin transactions in a process that produces newly minted cryptocurrencies such as bitcoin.
China vows to crack down on bitcoin
The latest crackdown is said to be a strategic method of fending off financial risk by State Council committees. China accounts for around 70% of the crypto supply around the entire globe, meaning this first-ever target is set to take an incredible toll on the industry.
“Crypto mining consumes a lot of energy, which runs counter to China’s carbon neutrality goals,” said Chen Jiahe, chief investment officer of Beijing-based family office Novem Arcae Technologies.
Bitcoin falls to $34,156
Bitcoin took a beating after the latest Chinese move, and is now down nearly 50% from its all-time high. Bitcoin fell by 8.9% to $34,156 at 1000 GMT on Sunday, losing $3,344.54 from its previous close.
Bitcoin also slumped after the Tesla Inc chief announced in May that Tesla would no longer accept bitcoin for car purchases, citing long-brewing environmental concerns for a swift reversal in the company’s position on the cryptocurrency.
