Is China slowly dismantling the presence of crypto in the region? thumbnail

Is China slowly dismantling the presence of crypto in the region?

You are here: Home / News / Is China slowly dismantling the presence of crypto in the region?

China

by

The crypto-verse has been receiving a lot of heat from China. Just as the country made advancements towards the launch of its central bank digital currency [CBDC], the digital yuan, the region sidelined the crypto market. The Chinese government seemed to be taking this forward as it shut down several mining farms around the country.

Right after Elon Musk withdrew support for Bitcoin, China called out several crypto miners in the country and urged them to exist. While the crypto community went on to label the saga, “the great mining migration,” several mining farms in the region were already making arrangements outside China. Prolonging this, the government recently shut down mining farms in Sichuan.

As per a recent report by Sina Finance, it was noted that the authorities of Ya’an City, in Sichuan had asked 26 mining platforms to shut shop as part of an investigation.

A Chinese crypto blogger, Colin Wu went on to reveal that the authorities had ordered power generating firms around the region to terminate any form of power supply to cryptocurrency mining farms. Elaborating on the government’s latest move, Wu stated,

“There are many small and medium-sized hydropower stations in Yunnan, Sichuan, and it may be difficult for them to receive government supervision. However, large-scale projects will be shut down in the short term.”

China’s largest cloud service provider follows suit

While China has been going ballistic on crypto mining platforms, the country’s largest cloud service provider, Alibaba Cloud jumped on the bandwagon. The platform had reportedly alerted mining farms as well as crypto firms across the country that it would soon stop working with them citing regulations imposed by the Chinese government.

Wu tweeted about the same and noted,

Exclusive: Alibaba Cloud, China’s largest cloud service provider, made a call to cryptocurrency and mining companies registered in China, saying that according to regulatory requirements, it may cancel its domain name and stop server operation. pic.twitter.com/LxCG3sgjvz

— Wu Blockchain (@WuBlockchain) June 18, 2021

Furthermore, Wu noted that this move of Alibaba Cloud would be hefty for cryptocurrency mining companies. However, exchanges wouldn’t have a lot of trouble. The tweet read,

“This has little impact on the exchanges, because their servers and registered locations are outside of China, but mining companies may need to do some replacements.”

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *