China is not yet done with its crackdown on crypto mining

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Source: Adobe / nyiragongo

China appears poised to declare victory in its war on crypto miners and may be ready to deliver a knockout blow in an effort to ban Bitcoin mining (BTC) from its shores once and for all.

According to a report by the Economic Times republished by the Peoples Daily, the Chinese state’s spokesperson, many minors are taking a wait-and-see approach and are not yet going abroad to continue their operations.

However, the author of the report claimed that the loose regulatory networks of countries like Canada, Russia and Kazakhstan are proving increasingly attractive to many.

And commentators have warned that the crackdown on crypto is far from over. Despite the recent de facto ban on industrial mining in a number of traditional hot spots and a crackdown on the banking and electronic payment industry, Beijing may be considering further action.

Even with the crackdown in place, commentators have said Beijing is keen to close legal loopholes and smooth out legislative wrinkles that allow miners to continue to accumulate tokens through cloud mining platforms. Interpersonal and over-the-counter (OTC) crypto transactions remain legal, as does crypto ownership. Beijing has yet to take any explicit action to ban miners from using clean energy sources despite the fact that many miners have recently ordered shops to close in areas like Sichuan that mainly use hydropower.

Dong Ximiao, chief researcher at Zhaolian Finance and supervisor of the School of Finance at Zhongnan University of Economics and Law, said Beijing’s first explicit demand for a crackdown on Bitcoin mining and [banking] transactions was undoubtedly a real movement, adding:

It is believed that follow-up will materialize soon. With stronger and more targeted surveillance measures, regulation will be even stricter. They will not be relaxed.

The outlet added that the government appears to have taken steps to prevent major search engines and social media platforms from posting results related to major exchanges originating in China. This means that searches like Huobi and Binance will not yield any results on platforms like Baidu and Weibo.

Regardless, the media reported that some minors seem to be living in hope. The prohibitive relocation costs and uncertain regulatory landscapes in the countries to which they plan to move put many off. Some miners have placed their hopes in the [lax] implementation of policies in various places, noted the author. If these policies are loosely implemented, there is still room for survival.

But Dong Ximiao asserted that Beijing’s next step could prove fatal to those hopes, as they should close legal loopholes as soon as possible to make surveillance more effective and deter [mining].

China wants to see sweeping reductions in its carbon emissions as early as 2030, and Beijing has reiterated its claims that the Middle Empire will be carbon neutral by 2060.

Meanwhile, the China Times reported that small hydropower plants (those with a capacity of 50,000 KW or less) in Sichuan, Yunnan, Gansu and Guanxi provinces are already starting to feel the repression. Many of these stations have been heavily dependent on crypto miners for custom in recent years. The outlet added that such stations require a huge upfront investment and long returns on upfront costs.

A Sichuan hydropower plant owner claimed he was making millions selling electricity to Bitcoin miners, a source of income that has now been cut off, forcing some owners to look to sell their stations. – Bitcoin mining difficulty crumbles as miners polish their image – Crypto mining rigs sell like junk as mainland China’s mood darkens

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