Under pressure from Chinese authorities, cryptocurrency miners are moving abroad, to the U.S. to Russia and Kazakhstan. Having escaped, they may never return to China, Bloomberg said.
After years of not bothering miners, Chinese authorities have begun to cut off power to specialized computers running warehouses as well as data centers that produce bitcoins. Many Chinese stopped mining digital currency. The bitcoin network’s total global computing power has dropped by about 60 percent since the beginning of last month.
Chinese authorities have become wary of the enormous energy consumption of bitcoin mining at a time when President Xi Jinping has set ambitious climate goals. Another reason is that the popularity of cryptocurrency poses a risk to Beijing’s financial stability. Regulators have difficulty tracking transactions.
In June, the People’s Bank of China instructed Chinese organizations, including major banks and the Alipay payment system, not to engage in cryptocurrency transactions. Meanwhile, authorities in the Xinjiang Uygur Autonomous Region demanded a complete ban on cryptocurrency mining in the region.
In May, the Chinese authorities stated the need to combat mining and crypto-trading and called for stricter regulation of mining and digital currency trading. Because of this, cryptocurrency mining companies BTC.TOP, HashCow, and Huobi stopped operating in the country.