Bitcoin falls as China cracks down on cryptocurrency services

Cryptocurrency services in China are suspending their operations in the region. This includes the likes of Huobi Mall and BTC.TOP as the local government has ramped up its efforts to crack down on Bitcoin mining and trading.

The move from the Chinese government has caused chaos in the digital currency ecosystem. According to an IndianExpress report, A State Council committee led by Vice Premier Lio announced that the ban earlier this month. This marks the first time the council has targeted virtual currency mining. For those unaware, crypto mining is a major business in China, with the region alone accounting for as much as 70 percent of the world’s crypto supply at the moment.

However, following this news from the Chinese government, Bitcoin took a major hit. The world’s largest cryptocurrency fell by nearly 50 percent from its all time high value of around 64,895 US Dollars back in April 2021. Thus, Huobi Mall announced in a statement that it would be suspending all of its custody businesses in China for the time being. In the statement shared via Telegram to its community, Huobi Mall stated that it is currently contacting its overseas service providers and also told its clients “not to worry and calm down.”

China Flag
Picture by Martin BOULANGER

Similarly, BTC.TOP also announced the suspension of its Chinese business due to the regulatory risks in the region. Founder Jiang Zhuoer further added that “In the long term, nearly all of Chinese crypto mining rigs will be sold overseas, as Chinese regulators crackdown on mining at home.” Back in 2017, China had lost its position as a global cryptocurrency trading center as it faced a ban in Beijing. Jiang now predicts that “Eventually, China will lose crypto computing power to foreign markets as well.”




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