Major Reasons Behind China’s Crypto Crackdown

China was considered the hub of crypto mining, and if not for every cryptocurrency out there, then definitely for Bitcoin. But that came to a hard end in May of 2021. China did issue a severe crackdown on crypto mining altogether; it was first perceived that this might be a regulatory thing, such as China strengthening its regulatory framework around crypto mining, and things would go back to normal. But it became more apparent when the crypto market did undergo a severe crash in May 2021 that China has no mind of dealing with crypto mining at all.

Many Bitcoin miners were pushed to halt their operation completely and find solace in various other mining-friendly frontiers. China is at some capacity responsible for the recent crash of the crypto market in May 2021, but the reason why China became so anti-crypto was never brought to light. But it is believed that the shutting down of all mining projects in China might have been because of an ongoing dispute between two companies.

Long-Standing Feud between Two Chinese Companies

There was an investigation conducted previously by the Chinese state supervisory Commission regarding the violation of Chinese law by a former party member and vice chairman of the provincial committee. This primarily led to a dispute which could have been the reason for such an immersive crackdown on the mining industry in China. According to the findings of the investigation, the previous chairman might have abused his powers for the sake of supporting companies related to cryptocurrencies and the crypto market one way or the other.

This isn’t all, as there were financial activities taking place in an illegal fashion on a large scale. Another Chinese official was part of a dispute carried out between Genesismining and Chuangshiji, where he supported the latter company. It is believed that the initial crackdown on mining was started by the same company affiliates, which were interested in cutting the source of a steady income for Genesismining in the country. Long story short, it was the lack of regulation and control that led to the mining crackdown in China, and no one knows for sure if this thing could ever be controlled, and crypto mining resumed within the region or not.

Leave a Reply

Your email address will not be published.

Related

Asia-Pacific Stocks Gain with Investors Weighing Economic Concerns

On Tuesday, shares in the Asia-Pacific region climbed higher, as investors were weighing the economic concerns. Most indexes record gains The Hang Seng index in Hong Kong had been trading at a loss but rose 0.7% in the last hour of trading. There was also a 0.73% gain in the Hang Seng Tech index. On […]

European Shares Reach Two-Week Highs Thanks to Miners and Prosus

On Monday, European shares rose to a high of two weeks, thanks to mining stocks as China lifted COVID-19 curbs, which gave global commodities a lift and also eased fears of inflation. Meanwhile, Prosus’ plans of trimming its stake in Tencent saw the Dutch company’s stock rally. Index records gains There was a 1.1% gain […]

Stocks Climb Up after Recent Big Gains, as Yields and Oil Rise

On Monday, volatile trading pushed global indexes higher, for the most part, allowing them to extend the sharp gains recorded in the previous week. Meanwhile, there was also a rise in Treasury yields and oil prices. Oil records gains After the rout seen in the previous week, oil finally managed to climb up, as investors […]

When Multiple Tokens Experience Demises, a Stablecoin Demonstrates a Strong Performance

When Multiple Tokens Experience Demises, a Stablecoin Demonstrates a Strong Performance

In recent weeks, the borrowing and lending spaces within the cryptocurrency industry have come under the microscope of regulators. These spaces have undergone scrutiny in recent months and the reason behind the growing pressure is the sell-off observed in the crypto-verse. Now, the investors and users within the cryptocurrency industry want to know exactly how […]

European Shares End Nervous Week on a Strong Note

On Friday, there was a 2.6% rise in European stocks, which helped them enter positive territory. The week saw investors moving into riskier assets, as they began to scale back on bets of central bank tightening. Best Session for Indexes The STOXX 600 index of European countries recorded its best session in over three months. […]