China Reiterated Its Mining Crackdown, Bitcoin Crashes 12%

China reiterated its mining crackdown and Bitcoin reacted immediately as it dropped by 12% so let’s find out more in our latest Bitcoin news today.

The financial committee in China emerged with the news that it will crack down on the BTC mining in the country and the note released includes a wide range of other financial risks.  BTC was hit with the news and crashed 12% immediately but this time, the Chinese financial committee added BTC mining as a key sector to monitor in the attempt to prevent and control financial risks. The meeting was seen by Liu He, the vice-premier of the State Council of the People’s Republic of China and He is the lowest-ranked out of all vice–premiers that report to the State council. He is also the director of the Central Financial and Economic Affairs Commission to the Chinese Communist Party.

The reports include a laundry list of activities beyond BTC mining including the reform of the small and medium-sized financial institutions, the effects of illegal securities activities, and the effective response to imported inflation. This is now the first time that the State Council spoke about BTC mining. Despite the broad nature of the report, BTC plummeted by 12%, and the price since recovered to around $37,800 which is a loss of 8$ in the last 24hours. A similar piece of news brought the cryptocurrency down to $30,000 and at that time, a group of three payments and associations reiterated the ban from 2017. China reiterated its mining crackdown and under the associations that were involved, we can see the National Internet Finance Association of China, the Payment and Clearing Association of China, and the China Banking Association.

Sources suggest that the latest crackdown on BTC mining will be limited to the operations which are not using hydroelectric power. The number of coal-based mining outfits in China is growing and the flooded coal mine in the Xinjiang Region triggered a steep drop in the BTC hash rate which is a metric used to determine how much processing power the BTC network uses.

As previously reported,

BIT Limited, a Chinese BTC company dedicated to mining, announced that it entered into a binding investment term sheet with Dory Creek LLC in order to invest in a crypto mining data center in Texas, and Dory Creek LLC is actually fully owned by BitDeer. The Chinese company will invest $25 million and will operate together with Dory Creek in Texas. The mining center has a total power capacity of 57.2 megawatts. The majority of the mining operations of BIT Mining are taking place in China’s Sichuan province which is a hotspot for miners because of the low cost of hydroelectric power.

Source: https://www.dcforecasts.com/bitcoin-news/china-reiterated-its-mining-crackdown-bitcoin-crashes-12/