Beijing Development and Reform Commission announced in the circular published to increase energy saving that the restrictive attitude towards Bitcoin (BTC) mining will continue. This move is interpreted as an indicator of China’s harsh attitude towards cryptocurrencies. Here are the details…
New cryptocurrency decision in China attracted attention
In the circular, it is said that the restrictive policy applied to cryptocurrency mining activities has been successful. It is also stated that these strict regulations should be continued. All cities are required to “clean up” crypto mining activities in accordance with the law. Beijing city officials also announced that they will take strict measures to monitor and analyze crypto mining activities in 2024. The city is determined to stop cryptocurrency-related mining activities that do not comply with laws and regulations.
Under the new regulations, the city will implement national requirements. It will also continue to eliminate virtual/cryptocurrency “mining” activities. It is planned to strengthen the monitoring, analysis and classified correction of these activities. The ultimate goal is to clean up the city’s virtual currency “mining” activities in accordance with laws and regulations.
Mining is also illegal
The Municipal Development and Reform Commission, the Municipal Network Information Office and the Municipal Economic and Information Technology Bureau will be responsible for the implementation of these measures. Cryptocurrencies are currently banned in China and crypto mining is also illegal. Despite this, the Chinese people’s interest in cryptocurrencies continues and they continue to purchase crypto assets through various methods. Some important points of the circular are as follows:
- It is said that the restrictive policy applied to cryptocurrency mining activities is successful. For this reason, it is stated that it should be continued.
- All cities are required to “clean up” cryptocurrency mining activities in accordance with the law.
- Beijing city authorities will take action to monitor crypto mining activities in 2024. It will also take stringent measures to analyze them.
- The city is determined to stop cryptocurrency-related mining activities that do not comply with laws and regulations.
- Under the new regulations, the city will enforce national requirements and continue to eliminate virtual currency “mining” activities.
Possible effects of this development could be:
- Bitcoin mining activities in China will decrease further.
- The prices of cryptocurrencies have the potential to fall.
- Crypto miners risk moving their operations to other countries.
- China faces the potential of passing new laws to regulate cryptocurrencies.
This development shows that China’s attitude towards cryptocurrencies has not changed. China sees cryptocurrencies as a risk. It also takes various measures to control these risks.
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