Beijing told China’s cryptocurrency miners that they have to go. The People’s Republic’s recent crypto ban is not surprising considering the decentral nature of crypto.
Qinhai and Xinjiang are two more provinces that added bitcoin mining to their hit list.
This follows an especially harrowing announcement on May 21 by Liu He at the 51st meeting of the State Council on Financial Stability and Development Committee. This reads like it’s straight of a George Orwell novel. The document states:
“It is necessary to comprehensively use a variety of monetary policy tools to maintain reasonable and sufficient liquidity, effectively prevent and defuse financial risks, and promote a virtuous economic and financial cycle.“
It continues… “(We must) Adhere to the bottom line thinking, strengthen the comprehensive scanning and early warning of financial risks, promote the reform of small and medium financial institutions, focus on reducing credit risks, strengthen the supervision of platform enterprises’ financial activities, crack down on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field. It is necessary to maintain the smooth operation of the stock, debt, and foreign exchange markets, severely crack down on illegal securities activities, and severely punish illegal and criminal financial activities.“
Banks, online payment channels, and financial companies cannot offer any crypto-related services to their clients – not even to sell off their assets! We are already seeing Chinese crypto miners shutting down, and even today the data says that Bitcoin’s hashrate has dropped 8% in the past 24%. The same website can also deliver the truth about the top 100 richest Bitcoin addresses: At this time, 100 wallets own approximately 15.5% of all Bitcoin. This is another reason for the China Crypto Ban… Stifling whales.
Did China’s Crypto ban have anything to do with their own inhouse national digital currency?
China already beat the US with its Yuan Digital Token
A digital Yuan deployed on a blockchain permitted by the People’s Bank is now live. Contractors are receiving the Chinese Digital token as payments for services in the country.
Joe Biden had his financial regulatory body known as the IRS deliver an ultimatum…
That all crypto transactions over $10,000 must be reported.
Yet, in a surprising move, the US SEC seems to have left Bitcoin out of its regulatory agenda. The US seems to be taking a more traditional approach. They cannot turn down such a massive tax revenue opportunity, but they also see the massive social benefit of Cryptocurrency. The varied attitudes between states toward crypto acceptance is one reason why displaced Chinese crypto miners are searching for new lands to call home.
The great migration of Chinese crypto miners is going to one of the most unlikely places…
Chinese Bitcoin Mining is Moving to Texas
The exodus of Cryptomining from the People’s Republic will spread throughout the world. Still, one of the best and most ideal locations for them to go is like a ‘Garden of Eden for Crypto’ for all the right reasons. While the Chinese flag has five stars, the state where their crypto miners might be going is known for just one.: The Lone Star State.
It couldn’t be more poetic.
Texas is notoriously crypto-friendly. The state has some of the world’s lowest energy prices due to competition. Also, 20% of Texas’s power comes from wind!
In a relatable move, Elon Musk moved a Tesla (NASDAQ:TSLA) gigafactory to Texas in response to California’s draconian back-to-work measures. This may entwine the influx of new crypto miners his desire to make Bitcoin mining sustainable.