Mining cryptocurrency in China have faced trouble as the government crack down on the exchange of crypto and yuan
According to the results of a recent poll of miners, 74% of respondents said that their ability to pay electricity bills had been affected largely due to government actions. And this also unintentionally harms mining cryptocurrency companies in China.
Due to the government’s nationwide card-breaking operation, crypto investors generally choose not to exchange CNY, but because miners need to pay electricity fees to the power station, they must exchange the mined Bitcoin/ETH into CNY,
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 16, 2020
Mining cryptocurrency in China faces difficulty cause government suppresses exchange of cryptocurrencies and yuan
According to data from Colin Wu, the trouble miners in China face when paying their electricity bills is due to the local government’s efforts to crack down on cryptocurrency and its exchange to the people. This could be caused by the current large-scale trials of the local Central Bank’s DCEP digital currency.
According to the results of a recent poll of miners, 74% of respondents said that their ability to pay electricity bills had been greatly affected due to government actions.
According to Wu, during large-scale operations to prevent money laundering in crypto, the government froze bank cards. This has become a real problem for miners who need to pay for the electricity they use for their rigs.
Lots of miners have been forced to turn off their mining equipment. Several OTC traders that helped miners convert cryptocurrencies to yuan have also stopped their work.
To prove his data was correct, Colin Wu consulted a source from the Chinese media.
Colin Wu assumes that, if things continue this way for miners in China, miners of cryptocurrencies in crypto-friendly jurisdictions such as the United States and Kazakhstan could replacing them in providing the hash power needed for the Bitcoin network and other cryptocurrencies.
Previously, it was reported that the Iranian government forced miners to sell their newly minted Bitcoins to the local Central Bank to later finance imports with it.
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