Following the decision of the Chinese regulatory body to crack down on cryptocurrency operators in the country, Miners are gradually closing shops and relocating elsewhere. Top crypto miners, including BTC.TOP and Huobi Mall are closing their operations in the country in response to the tougher regulation.
Crackdown has affected Bitcoin’s price
Bitcoin has been doing poorly lately after the news of the increased crackdown broke out. Interestingly, Vice President Liu He’s announcement on Friday is the first time the country has targeted crypto mining directly.
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It’s no surprise that it affected the price of Bitcoin (BTC/USD) and crypto since the country provides as much as 70% of the world’s crypto supply.
Bitcoin plummeted after the move, shedding as much as 17% on Sunday. It has now lost about 50% of its value over the past week.
Global crackdown on crypto
Governments have cited money laundering and high investment risks are the main reasons for their stance against cryptocurrencies. But the decentralized nature of crypto assets has made it difficult to craft out an appropriate regulatory framework in the industry.
As a result, different governments have taken drastic steps in a bid to supposedly stop the high risks associated with such digital assets.
Chairman Jerome Powell, US Federal Reserve Chairman, ignited the fire when he suggested a tougher regulation on cryptocurrencies considering its greater risks to financial stability.
China’s interest in its CBDC still high
China, in particular, has not been friendly with crypto trading, as the government initially banned banks from any crypto activity in 2017.
The country’s interest in the introduction of its central bank digital currency (CBDC) is still high. It has also thrown its weight behind blockchain, the technology on which Bitcoin and other cryptocurrencies are based.
On Sunday, Huobi’s subsidiary Huobi Mall stated that it has suspended all its custody businesses.
The company said it is in contact with service providers overseas to export mining rigs in the future. Huobi added that clients should be calm in this situation while the company tries to put things in order.