Major Chinese Crypto Exchange Bans Bitcoin Mining Operations
In a further effort to curtail bitcoin mining and subsequent cryptocurrency use in China, a major Chinese cryptocurrency exchange has halted bitcoin mining services and sales of mining equipment in mainland China.
According to the South China Morning Post, cryptocurrency exchange Huobi has become one of the first Chinese platforms to put a stop to its miner hosting operations. “In order to be more focused on the expansion of our overseas presence, we will currently suspend provision of related services for new users in mainland China. For existing users, updated information and details will be announced shortly,” explained a Huobi spokesperson.
In a separate statement, the exchange also announced that although its hosting services will be suspended on its mining cloud platform, the mining pool it oversees will remain operational. Back in 2019, the Chinese government banned bitcoin and cryptocurrency transactions, but digital token farming still continued to operate in Inner Mongolia, Sichuan, Xinjiang, and several other locations.
However, China’s Financial Stability and Development Committee announced on Friday that it will “crack down on bitcoin mining and trading behavior, and resolutely prevent the transfer of individual risks to the society.” Similarly, the Inner Mongolia Autonomous Region Development and Reform Commission has taken the crypto ban even further, and urged the general public to report any illegal mining activity that may still be going on.
Information for this briefing was found via the SCMP. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.