Just last month, the Financial Stability and Development Committee of the State Council of China announced further controls on financial risks, dealing another blow yet again to the already suffering bitcoin miners in the country.
The committee’s announcement was the latest in China’s on-going tension with the cryptocurrency industry, but this time it might be different given the Communist Party’s promotion of its Digital Yuan. This prompts commercial operations, specifically, miners, look to move their business elsewhere.
Moreover, the announcement specifically mentioned cracking down on bitcoin mining and trading within the bounds of “controlling financial risks.”
BTC mining subjected to extreme measures
Reports from Reuters suggest that the country’s intense crypto crackdown already found its way to the western province of Sichuan where orders for closure of bitcoin mining operations have been issued by authorities.
According to a notice cited by the media outlet, “The Sichuan Provincial Development and Reform Commission, and the Sichuan Energy Bureau issued a joint notice demanding the closure of 26 suspected cryptocurrency mining projects by Sunday.”
As part of this, electricity companies in the area are reportedly ordered to cease the supply of power to mining firms in order to halt their operations.
Is Paraguay next in line?
Recognizing a potential dilemma on the part of bitcoin miners, the U.S., via Texas and Miami, have put themselves forward as feasible places to set up shop in an attempt to attract crypto miners from China.
However, with the bitcoin revolution that’s been going on that was kicked-off by El Salvador’s decision to accept the crypto as legal tender, experts believe Chinese mining firms will favor lower costs and abundant renewable energy sources in countries such as Paraguay.
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