The value of the digital currency bitcoin fell by more than 10% Monday as China intensified its crackdown on its vast crypto-mining sector with a ban on mining sites in a major province in the southwest of the country.
,The Chinese bitcoin mining sites provide about 80% of global trade in cryptocurrencies, despite the ban on trading in them locally since 2017, but several provinces have ordered the closure of mining operations sites at a time when Beijing began targeting the sector.Authorities in Sichuan Province ordered the closure of 26 sites containing large computers for mining bitcoin transactions last week, according to a memo widely circulated on social media and confirmed by a former person working 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.