Rupali Soni
Image Credits: Getty Images
China has been struggling with shutting the doors of the country for crypto miners for a long now, and it seems that the country is now on the verge of declaring its victory in this battle, however, a report says that the war is not over yet. There are still some miners who have the “wait and see” approach towards the ban of crypto mining in China and hence, they are not proceeding with their movement to another country for their business.
While the miners who are moving abroad are preferring the countries with easy regulatory networks such as Kazakhstan, Canada, and Russia.
Where China is continuously working towards a crypto-free state and hence closing all the loopholes which help the miners to accrue the tokens, Beijing seems to have some other plans. Nevertheless, the ownership of the cryptocurrency is still legal in the country and so does the over-the-counter transactions. The Chinese government recently ordered the miners to shut down the mines in Beijing, and they are particularly the miners who were using hydropower for the mining process.
Notably, the Chinese government has announced a complete ban on crypto mining in the country recently, and hence all the traditional hotspots of crypto mining are shut in the country after the announcement. This decision of China impacted the crypto market to a great extent, and due to the Chinese crackdown, all the digital countries kept plunging last weeks.
Moreover, the country is working on its crypto banning project very secretively, and hence all the social media platforms and other search engines are probably blocked from presenting the results of the major changes that are taking place in the country, as per a report.
This decision of the Chinese government to ban crypto mining has affected the miners badly, and hence, many of them are still living in hope as they are not ready to bear the relocation cost as there are not certain regulations around the digital currency in any nation. The regulatory policies around crypto are changing frequently, and only the loose implantation of these policies can help the crypto miners to survive currently.
The main reason behind the ban on crypto as suggested by the Chinese government is environmental degradation due to carbon emissions. The topic of environmental issues due to crypto mining was highlighted by the Tesla CEO firstly when the company announced that it will not accept cryptocurrency as payment in the future. China aims to make the country carbon neutral by 2060, and with this vision, China is moving ahead with its strategy.