Bitmain stopped shipping virtual currency “mining” to mainland China and faces greater efforts to clean up

A few days ago, affected by the new regulations governing virtual currency, Bitcoin mining machine manufacturer Bitmain issued an announcement stating that its Antmining machine will stop shipping to mainland China from October 11th, targeting mainland China that has purchased forward products. Customers will provide alternative solutions, and the adjustment of shipping policy will not affect customers in overseas markets. Bitmain also stated that in response to the carbon neutral policy, the company has completed several batches of carbon indicator purchases, which are mainly derived from clean energy power generation projects in Yunnan, Xinjiang, and other places in China.

In fact, since May this year, the regulatory authorities have been escalating their crackdown on virtual currency “mining” and other activities. Inner Mongolia, Xinjiang, Yunnan and Sichuan have also introduced policies to clean up and rectify “mining” related industries, and Played a significant effect.

Large-area mine clearance and withdrawal  machine manufacturers suffer significant impact

According to the “Digital Currency Anti-Money Laundering and DeFi Industry Security Report in the First Half of 2021”, the total amount of funds flowing out of domestic trading platforms to foreign trading platforms in the first half of 2021 reached 28.3 billion U.S. dollars, 1.6 times the total amount of funds outflows in 2020 , This is mainly due to the continued rise in the price of Bitcoin in the early part of the first half of the year. From May to June, due to the strengthening of domestic policies on mining and trading, the outflow showed a downward trend, down by nearly 40%.

In the context of strict supervision, many domestic mining machine manufacturers, mines, and mining pools have begun to shut down and strategically shift to “going to sea”. The reporter noticed that in July, Bitmain announced the divestiture of its mining pool brand Antmining Pool and independently develops mining pools and other businesses overseas; in June, mining machine manufacturer Canaan Technology announced that it has officially opened its own operation in Kazakhstan. “Mining” business, the first batch of Avalon mining machines were put on the shelves and started operation; Ebon International also announced that it had stopped the domestic mining machine custody business, and stated that its focus is to accelerate the establishment of compliant mines in North America and Europe, and do its best Use renewable energy for power supply.

Zheng Xiangxiang, chairman of the Shenzhen Information Service Industry Blockchain Association, told a reporter from the Securities Daily: “With the withdrawal of large-scale mines, mining machine manufacturers have suffered a significant impact on the domestic market. Manufacturers have warned that relying on a single business to focus on short-term profiteering speculation is not a long-term solution. On the other hand, it also forces mining machine manufacturers to adjust their industrial structure.”

Virtual currency “mining”  will be included in the obsolete catalog

On September 24, in order to prevent the resurgence of virtual currency “mining” and other activities, the regulatory authorities made another heavy blow. The National Development and Reform Commission and other 11 departments further issued the “Notice on Renovating Virtual Currency “Mining” Activities”, proposing to strengthen the supervision of the entire industry chain of the upstream and downstream of virtual currency “mining” activities. On the same day, ten departments including the People’s Bank of China also introduced new regulations to rectify the “virtual currency hype”, making it clear that virtual currency-related business activities are illegal financial activities.

Chen Xiaohua, a review expert on major industrial Internet blockchain projects of the Ministry of Industry and Information Technology and chairman of the China Mobile Communications Federation’s Blockchain Professional Committee, told a reporter from the Securities Daily that the “mining” industry not only consumes a lot of energy, but is not in line with the carbon neutral policy. Moreover, it has limited driving effect on high-quality economic development and technological progress, and may cause related risks, which will adversely affect my country’s financial system.

“The whole industry chain supervision can avoid the’press the gourd and float the scoop’, thereby eradicating the trend of virtual currency transaction hype.” Ding Feipeng, director of Beijing Lantong Law Firm, told the reporter of “Securities Daily” that the virtual currency transaction hype in recent years The main reason for the resurgence of the wind is the “money effect” created by it. The more active the transaction, the more obvious the profit effect, the more so-called “rich rich” stories, and more people will participate in trading and mining. The activity of mining and mining in turn stimulated hype, and so on.

The reporter noticed that after various departments requested an all-round crackdown on virtual currencies on September 24, Jiangsu Province recently took the lead in a comprehensive investigation of virtual currency “mining” behavior. The Jiangsu Provincial Communications Administration found that the export traffic of mining pools in Jiangsu Province for virtual currency activities reached 136.77Mbps, and the total number of Internet IP addresses participating in “mining” was 4502, which consumed more than 10PH/s of computing power and consumed 260,000 kWh of energy. /sky. From the perspective of the ownership and nature of the IP address, about 21% of the people belonging to party and government agencies, universities, and enterprises were invaded and used to conduct virtual currency “mining” behavior. In the next step, the Provincial Communications Administration will continue to carry out virtual currency “mining” situation analysis, and further cooperate with relevant departments to form a “multi-dimensional, multi-level” disposal system.

In addition, it is worth noting that on October 8, the National Development and Reform Commission publicly solicited opinions from the public on the “Market Access Negative List (2021 Edition)”, and re-listed the virtual currency “mining” into the elimination list. Chen Xiaohua said that once the virtual currency “mining” project is regarded as an obsolete industry, once it is truly included in the above negative list, the “mining” industry will basically not exist if the local government wants to establish the project, and the virtual currency “mining” Will face greater clean-up efforts.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bitmain-stopped-shipping-virtual-currency-mining-to-mainland-china-and-faces-greater-efforts-to-clean-up/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply