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China announces war on cryptocurrency mining- rousing wider fear

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Shivangi Mujumdar Follow

INDIA

Mar, 12 2021

Mar, 12 2021

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Chinese officials initially defined proposals in 2018 to depress crypto-mining -- the computing method that makes transactions with virtual currencies likely but consumes massive amounts of power. 

 

China’s Inner Mongolia has forbidden cryptocurrency mining and acknowledged it will shut all such projects by April, spurring doubts the world’s No. 2 economies will take more phases to eliminate the power-hungry practice. 

 

The autonomous region, a favorite among the industry as of its cheap power, also banned new digital coin plans, allowing a draft plan displayed on the Inner Mongolia Development and Reform Commission’s website on February 25. The purpose is to oblige growth in energy feeding to about 1.9 per cent in 2021. 

 

The announcement scared an industry that’s previously finished a years-long Chinese campaign to clamp down amid anxieties over speculative bubbles, fraud and energy waste. The draft policy was permitted weeks after China’s top financial organizer distressed Inner Mongolia for being the only zone to fail to control vitality consumption in 2019. 

 

The region now aims to cut emissions per unit of unrefined domestic product by 3 per cent this year and bound incremental growth of liveliness consumption to about 5 million tons of standard coal, according to the current plan. 

 

Chinese officials first drew proposals held in 2018 to discourage crypto-mining-- the computing process that makes transactions with virtual currencies likely but consumes vast amounts of power. 

 

The local crackdown is refreshing old fears. Beijing then 2017 has abolished initial coin offerings and fastened down on virtual currency trading inside its borders, forcing several exchanges overseas.  

 

The country was once home to about 90 per cent of trades but the lion’s part of the mining and major players like Bitmain Technologies Ltd. have fled abroad. 

Nvidia Corp. and Taiwan Semiconductor Manufacturing Co. are between listed chipmakers that source crypto miners in China and around the world. 


Source: https://www.business-standard.com/article/international/china-declares-war-on-cryptocurrency-mining-stirring-wider-fear-121030200063_1.html


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Shivangi Mujumdar

CBW - External Analyst

INDIA

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