Under the pressure of the Chinese authorities, the miners cryptocurrencies move abroad, from the United States to Russia and Kazakhstan. Running, back to the PRC they can never return, writes Bloomberg.
After many years, when miners were not disturbed, the Chinese authorities began to disconnect specialized computers on warehouses, as well as data processing centers producing bitcoins from electricity. Many Chinese stopped producing digital currency. The total global network of the Bitcoin network fell by about 60 percent from the beginning of the last month.
The PRC authorities began to be wary of the huge consumption of energy in the extraction of bitcoins at the time when the President of Czy Jinping has set ambitious goals in the climate area. Another reason is the popularity of cryptocurrencies represents the risk for the financial stability of Beijing. Regulators are difficult to track transactions.
In June, the People’s Bank of the People’s Republic of China prescribed to Chinese organizations, including the largest banks and the Alipay payment system, do not participate in cryptocurrency transactions. Meanwhile, the authorities of the Xinjiang-Uygur Autonomous Okrug demanded to completely ban the mining of cryptocurrencies in the territory of the region.
In May, the Chinese authorities declared the need to combat mining and cryptotrading and encouraged to toughen the regulation of mining and commerce digital currency. Because of this, the company has ceased to work on mining companies BTC.Top, Hashcow and Huobi.