Shock Development In China: They Declared War on Bitcoin Miners!

Recently, many investors have turned to cryptocurrencies, and China has gotten into trouble. Preparing to issue its own digital yuan, China has declared war on cryptocurrencies. The first hit came with the news that China’s local financial institutions and payment systems were banned from providing cryptocurrency services. Following the news of the ban, China now goes after bitcoin miners. So what is the latest situation in China’s war on cryptocurrency?

bitcoin miners

Crypto coins, which investors follow with interest, are in trouble with China. China has banned local financial institutions and payment systems from providing cryptocurrency services. According to the latest developments, people who are mining crypto money in China have been pursued.

CHINA BATTLE ON CRYPTOCURRENCY

According to the reports published in The Economist and CoinGeek, China is tracking cryptocurrency miners in Inner Mongolia, known as the coal-rich region. The Chinese administration has also set up a whistleblower line in order to identify and find people who are mining cryptocurrency in the region. It is also known that the region, known for its cold weather and coal richness, was a favorite of Chinese crypto money investors for a while.

It is also calculated that 8 percent of Bitcoin production is made in Inner Mongolia. However, considering the high energy consumption of Bitcoin mining, it is stated that China took this step out of fear of carbon emissions. It is known that China is trying to reduce its annual energy consumption by 15 percent. Chinese mining companies Weminar announced that they have closed many parts after this decision, and now BTC.TOP is preparing to move from Inner Mongolia to Xinjiang.

WHAT IS BITCOIN MINING? WHAT DOES IT MEAN?

In order to bring Bitcoin to the market, very powerful computers are required and they have to solve quite difficult math. This process is called mining. However, a lot of energy is consumed during these processes. Bitcoin miners also prefer to do this job in regions with cheaper energy sources and colder weather. According to research conducted by Cambridge University, Bitcoin production causes 149.63 terawatt-hours (TWh) of energy to be consumed annually. This figure surpasses the annual energy consumption figure of Malaysia (147.2 TWh) and Sweden (131.7 TWh).

In the tax compliance plan of the United States Department of Treasury, there is a request to report cryptocurrency transfers over $ 10 thousand to the US Tax Office in order to prevent illegal activities, including tax evasion. The Department of Treasury published the report of US President Joe Biden on the tax compliance plan prepared for the American Families Plan. In the report, it was stated that cryptocurrencies, whose market value has increased to $ 2 trillion, cause anxiety and fear.

SEE ALSO: Ripple vs. Bitcoin: Which One Is A Better Alternative?

Share this article

Caroline Tetra

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Global Markets Search for the Right Direction!

Mon May 24 , 2021
While the global markets follow a mixed course with uncertainties regarding inflation and monetary policies, macroeconomic data to be announced in the new week will again be at the center of the agenda. The most important agenda of the past week in global markets was the signals regarding the economy […]
Subscribe to Our Newsletter Don't miss the latest news!

Enter to get a chance to win 100$ every week!