The Leading Financial Risk Remediation Group on the Internet, the main regulator of digital finance in China, issued a notice asking local governments to guide bitcoin mining operations to make an "orderly exit" from the business, reports the Quartz newspaper.
It is noted that the regulatory group asks local authorities to use measures related to the price of electricity, land use, taxes and environmental protection, among other things, to guide bitcoin miners to abandon the business . Likewise, it asks the local offices to report on the mining facilities in their regions, as well as the progress of the exit of the business for January 10, 2018, and then for the tenth day of each month.
China created in 2016 the Leading Group of Financial Risk Remediation on the Internet, led by PanGongsheng, vice president of the People's Bank of China. In December of last year, Gongsheng announced that the central bank had taken correct decisions by banning the Initial Currency Offer (ICO) and closing the local cryptocurrency exchanges. He also predicted the death of bitcoin.
China represents more than two thirds of the global processing power dedicated to digital currency mining. In addition, it hosts some of the main hardware creators to mine bitcoin.
The latest crackdown on bitcoin mining came amid China's efforts to better distribute electricity to places where not enough power is being supplied. Bitcoin miners have used cheap energy in areas such as Xinjiang and Inner Mongolia in recent years to expand their operations, notes Zheping Huang.