The Chinese government is continuing its regulatory crackdown on bitcoin “mining” and payment services, with a Monday notice by the People’s Bank of China: “Virtual currency trading activities disrupt the normal economic and financial orders, breed the risks of illegal cross-border transfer of assets, money laundering and other illegal and criminal activities, and seriously infringe the people’s property safety.” Chinese banks are prohibited from being involved in these transactions. Market Watch added that the PBC announcement came a day after the regional Chinese government in Sichuan announced it would close more than two dozen suspected cryptocurrency-mining operations.
They go on to quote Sarah Brennan, an attorney at the law firm Harter Secrest & Emery that deals in this area: “The SEC has been…really mum on their agenda and their enforcement priorities” regarding crypto-currencies.
The Chinese crackdown appears to be the major cause for a dramatic fall in bitcoin prices by more than 50% from its record high earlier this year.
According to The Verge, an April 2020 study by the University of Cambridge estimated that China provided 65 percent of Bitcoin’s hashrate (ie “mining"), with three main provinces making up the bulk of that computing power: Xinjiang led the way with about 30% of world total, followed by Sichuan and Inner Mongolia. Current shares are thought to be similar to those from a year ago. The Verge adds: “The Chinese government has been tightening the screws on Bitcoin for years — it banned banks from handling Bitcoin in 2013, and banned initial coin offerings in 2017… Iran issued a temporary ban on mining during the summer months, and India is potentially making ownership of crypto illegal. El Salvador has gone the opposite direction, becoming the first country to make Bitcoin a legal tender.”