Crypto Mining Will Be Soon Banned In China Due To Its Wasting Resources

In order to avoid economic issues, Chinese regulators are trying to gradually move crypto mining out. However, kicking everyone out is not that easy.

In an attempt to reduce air pollution choking cities like Shanghai and Baoding, China is paying extensive attention to crypto mining.

In 2017, this country prohibited cryptocurrency exchanges which serve local residents, resulting in descent in prices. The new rules had involved a risk to manufacturers of mining equipment in the domination of the Bitcoin industry.

Recently, China has formulated a proposal for banning Bitcoin mining. In the proposal, it is stated that this activity has intensely “wasted resources”.  The new list is under public consultation until May 7.

Since 2018, China’s been reportedly seeking an "orderly exit" from crypto mining. This country’s internet finance regulator had suggested local governments to strongly encourage enterprises to stop the business by raising power prices and imposing tougher environmental rules. Not only is the government concerned about pollution, but also the havoc caused by investors that lose money investing in cryptocurrency.

In a regular Bitcoin mining enterprise, powerful banks of computers are attempting to process "blockchain" numbers. While these numbers actually serve no purpose, they only have value as people think they do. According to Nature Sustainability, in China, approximately three-fourths of cryptocurrencies had been mined, bringing about nearly 10M tons of carbon dioxide.

As reported by the South China Morning Post, if the new rule is enforced, Chinese miners will have to stop their operations in Yunnan and Sichuan and move operations to foreign countries. Many of them have already moved to Quebec, Canada where hydropower is plentiful, non-polluting, and cheap. Meanwhile, others have opened shops at dirty coal plants in other places like Australia.