“Bitcoin” loses 10% and falls to 32,000 dollars due to China’s crackdown on its mining sites


The value of the digital currency Bitcoin fell by more than 10 percent Monday, as China intensified its crackdown on its vast crypto-mining sector with a ban on mining sites in a major southwestern province.
Chinese bitcoin mining sites supply about 80 percent of global trade in cryptocurrencies, despite the ban on trading in them locally since 2017, but several provinces have ordered the closure of mining sites at a time when Beijing began targeting the sector.
Authorities in Sichuan Province ordered the closure of 26 sites containing large computers for conducting bitcoin mining transactions last week, according to a memo widely circulated on social media and confirmed by a person who previously worked in the sector.
Bitcoin price fell to $32,309. The currency has been hit hard in recent weeks, with China targeting it after hitting a record high of about $65,000 in April.
The memo reportedly ordered energy companies to stop supplying electricity to crypto-mining sites by Sunday.
It pledged a “total purge”, while local authorities ordered a thorough investigation to find and shut down crypto mining sites.
The county is one of the largest extraction machine bases in the country.
A former cryptocurrency miner told AFP that “everything has been closed” in line with the requirements of recent days.
“They formed working groups that come to inspect…to make sure that we stopped our operations and removed the machines,” he said.
Sichuan is home to a large number of cryptocurrency mining sites that require a huge amount of energy available in the province, which has abundant hydropower resources at cheap prices.
According to a report published by the government newspaper, Global Times, the closure of sites in the province has wiped out more than 90 percent of Bitcoin mining methods in the country.
Beijing has tightened its approach to cryptocurrency mining to eliminate financial risks resulting from speculation, at a time when environmental concerns about mining sites, which consume large amounts of energy, are among the influencing factors.
And Chinese media reported that the supply of electricity to bitcoin mining sites across the province stopped at midnight on Sunday, as the news spread on social media.
In recent months, all crypto-mining sites in sparsely populated, coal-rich and hydropower regions in Inner Mongolia and Qinghai provinces have been ordered to shut down, with citizens encouraged to report illegal sites.
Last month, the value of Bitcoin plummeted after three Chinese financial industry authorities reaffirmed their ban on financial institutions providing cryptocurrency services, warning of risky traders speculation.
The Chinese authorities are waging a massive regulatory crackdown on the fintech sector, whose biggest symbols — including Alibaba and Tencent — have faced heavy fines after being found guilty of monopolistic practices.


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