Bitcoin mining is an energy-intensive industry that China doesn’t encourage as BTC has no actual value
According to Wenshu Court, the Supreme People’s Court of China stated that cryptocurrency and Bitcoin mining is an energy-intensive industry that China doesn’t encourage. Previously, the Chinese government requested that mining and trading be cracked down. Besides, China’s central bank is not willing to change its long-standing hawkish stance on cryptocurrencies.
Source: Wu Blockchain Twitter
China made it crystal clear that it’s not going to soften its stance on crypto and Bitcoin mining
This was raised in a judgment between Genesis Mining and a data center in China. The Supreme People’s Court of China has sided with Genesis Mining over its claim of nearly half a million graphics cards used to mine cryptocurrency that have been at the center of a legal dispute since 2018.
It appears that China’s recent crackdown on crypto mining also contributed to Genesis Mining’s legal victory. The Supreme Court explained in the ruling that the decision is in line with China’s overall strategy of discouraging the energy-intensive crypto mining activities.
In a local media briefing, Yin Youping, deputy director of the Financial Consumer Rights Protection Bureau, recently said that digital assets of the likes of Bitcoin are not legal tender and have no actual value.
He added that cryptocurrencies are pure investment speculation, urging people to steer clear of them. Due to the rising popularity of cryptocurrencies, the People’s Bank of China (PBoC) moved to ramp up its crackdown on crypto trading.
The PBoC is reportedly working with the China Banking and Insurance Regulatory Commission to develop systems for monitoring and combating the use of crypto. At the same time, it encourages people to report crypto-related crimes.
In addition to the pressures laid down by the PBoC, local governments in China have also started taking proactive measures to stop crypto activities. Regulators from Yingjiang County have asked hydropower plants to cut the power supply for crypto miners in the area.
Earlier this year, multiple Chinese provinces moved to shut down Bitcoin mining, effectively banning the entire industry and causing the great migration of miners.
- The Chinese Legal Industry Has Disputes Over Crypto, Especially Between Shanghai And Shandong
- China’s Yingjiang County Prohibited Hydropower Stations From Supplying Crypto Mining Companies