China seems ready to declare victory over crypto miners and may even be willing to issue a coup de grace to expel Bitcoin (BTC), mining from its shores.
According to a report by the Economic Times – , republished by The People’s Daily, the mouthpiece for the Chinese state, many miners are still waiting and watching, but aren’t yet planning on moving overseas to continue their operations.
The report’s author stated that many were finding it increasingly attractive to have “loose” regulatory systems in countries like Canada, Russia and Kazakhstan.
Commentators warned that crypto-crime is still being fought. Beijing could be considering new measures, despite the recent ban on industrial mining in some traditional hotspots.
Even though the crackdown is in place, commentators were quoted saying that Beijing is determined to close legal loopholes. Crypto ownership and transactions over-the-counter and personal crypto transactions are legal. Beijing has yet to make an explicit move to ban miners using clean energy sources, despite the fact many miners who were recently told to close down their shops in Sichuan used mainly hydropower.
Dong Ximiao is the Chief Researcher at Zhaolian Finance and also the Supervisor of Zhongnan University of Economics and Law’s School of Finance. He was quoted as saying that Beijing’s first explicit request to crackdown on Bitcoin mining and [banking] transactions was “undoubtedly a genuine move.”
According to the media outlet, the government seems to have taken steps to prevent major search engines and social networking platforms from showing results that are connected to major Chinese exchanges. Searches for Huobi and Binance won’t be able to find results on platforms like Baidu or Weibo.
However, some miners seem to live in hope, according to the media outlet. Many are discouraged by the prohibitive relocation costs and uncertain regulatory environments in the countries where they might move. The author stated that some miners had placed their hopes on lax policies being implemented in different places. These policies can still be implemented loosely. There is still hope for survival.
Dong Ximiao said that Beijing’s “next steps” could be fatal to these hopes. They “should make up legal deficiencies as soon and as possible to make supervision better and deter [mining]”.
China is determined to reduce its carbon emissions by as much as 30% by 2030. Beijing also reiterated the claim that the Middle Kingdom would be carbon neutral in 2060.
The China Times reported, that smaller hydropower stations (those having a capacity less than 50,000 KW) in Sichuan and Yunnan provinces, Gansu, Gansu, Gansu and Guanxi are already feeling the crackdown’s bite. In recent years, many of these stations were heavily dependent on crypto miners to get their custom. According to the media outlet, such stations are expensive and require long returns on initial costs.
One owner of a hydropower station in Sichuan claimed they were making millions selling power to Bitcoin miners. This source of income has been cut off and some owners are forced to sell their stations.
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