Qinghai Province bans mining. What will happen next?
The situation with the mining of cryptocurrencies in China is gaining momentum. The state again begins an aggressive policy towards digital assets. Today it became known that the authorities of Qinghai Province are issuing a state project that should completely ban the production of digital currencies in the region. It is quite possible that this will be the beginning of the end of the entire industry in the vastness of China. Is there a reason to worry? Let’s figure it out.
What is known at the moment?
If you follow the latest developments in the industry, then remember that China has an extremely negative attitude towards all digital assets. At the moment, the state is pursuing an extremely tough policy that limits all funds of the new generation in the vastness of the country. And, apparently, the government intends to impose even more sanctions on digital assets. In any case, this is precisely the attitude of the representatives of Qinghai Province. This is not the largest region of the country, and therefore it is quite possible that a complete ban on the production of digital assets in China will begin from it.
The department of industry and information technologies of the republic is behind the development of such a serious state initiative. But, we note that at the moment the ban applies only to large companies that are engaged in the extraction of digital assets. All projects received a notification, which clearly prescribed an instruction to suspend the production of new currencies.
To ensure compliance with the order, the state will begin monitoring all organizations associated with the extraction of digital funds. This is done in order to make sure that mining is completely stopped. All technological organizations will also go through examinations that will reveal the hidden mining of new generation currencies. Details of the bill will become known in 10 days. Already on June 20, we will get a complete picture of what is happening in the country and what will happen next. So far, we can only predict and represent further market movements.
Qinghai – is it the first step towards banning mining?
Quite possible. In any case, this is the first province to completely stop the mining of new generation currencies. Previously, such regions as Xinjiang and Inner Mongolia revised their attitude to mining. However, local journalists, in particular Colin Wu, look at the situation in a positive way. In his opinion, for example, the suspension of the production of new currency assets does not mean at all that the mining of cryptocurrencies will be completely prohibited. However, most users and analysts advise preparing for the worst. The state explains its tough policy with the intention to monitor the level of electricity used on the territory of the state. The government rightly believes that due to the increased popularity of mining, the level of used electricity has dropped dramatically.
But, it is quite possible that the state is simply preparing the space for launching its own digital yuan. We have previously talked about the Chinese government’s own digital currency on several occasions. Which should see the light in the near future. What do you think about the current situation with cryptocurrency mining in China? Share your opinion in the comments. In such a difficult time, you need to stay calm and stay updated on the latest news in the crypto industry. Read our news articles. We publish only high-quality, interesting material. Thanks for attention. Good luck!