China continues its attack on bitcoin

Authorities in China’s Qinghai province and a county in neighboring Xinjiang province have ordered a halt to cryptocurrency mining this week, following a policy of tightening control over the industry, writes Reuters.

A division of the Ministry of Industry and Information Technology in Qinghai has banned new cryptocurrency projects in the province since June 9 and ordered the closure of existing ones, according to an order that the agency reviewed.

The Xinjiang Development and Reform Commission issued a similar order. Projects at Zhongdong Economic and Technological Development Park should be closed. Xinjiang is the largest Bitcoin mining center in China, accounting for a third of the country’s total computing power, while Qinghai is in ninth place.

The termination of miners in Xinjiang has already been reported by The Block. The ban is a continuation of the efforts of the Chinese authorities to combat crypto trading and tighten regulation in the industry. BTC.TOP and HashCow cryptocurrency mining companies have already stopped working in the country, and the Huobi exchange announced the suspension of mining.

China’s policies are negatively affecting the value of bitcoin. Analysts predict that the price of the most popular cryptocurrency could fall by almost half, to $ 20,000. Difficulties for bitcoin may arise due to the tightening of regulation at the global level: the Basel Committee on Banking Supervision suggests making it difficult for financial institutions to use cryptocurrencies.

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