The central bank cracks down on the Bitcoin market: Mining overseas stops trading in bulk areas

In response to the central government's call to crack down on Bitcoin mining and trading, local governments and regulatory agencies have been issuing policies in the past two weeks.

On June 18, 2021, the relevant departments of Sichuan Province issued a notice requiring the immediate cessation of power supply to virtual currency "mining" projects. Since then, major Bitcoin mining sites in Xinjiang, Inner Mongolia, Qinghai, Yunnan, Sichuan and other places have introduced regulatory policies to clean up Bitcoin mining in a one-size-fits-all manner.

According to the website of the People's Bank of China on June 23, 2021, relevant departments summoned some banks and payment institutions, including the Industrial and Commercial Bank of China, the Agricultural Bank of China, the China Construction Bank, the Postal Savings Bank of China, the Industrial Bank and Alipay (China) Network Technology Co., Ltd., regarding the issue of banks and payment institutions providing services for virtual currency trading speculation.

Subsequently, Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Postal Savings Bank of China, Industrial Bank of China and Alipay successively issued statements, promising to strengthen monitoring of cryptocurrency transactions. Suppressed by regulatory policies, the price of Bitcoin once fell below $29,000.

Cryptocurrency companies have taken measures to prepare for the latest regulatory policies. Golden Finance has summarized the response measures of some companies.

On June 23, mining machine manufacturer Canaan Technology announced that it had officially launched its self-operated mining business in Kazakhstan, with the first batch of Avalon mining machines put into operation. Zhang Nangeng, chairman and CEO of Canaan Technology, said that the move was aimed at avoiding a single source of income and improving inventory to cope with the impact of Bitcoin price fluctuations. Canaan Technology has established its first overseas after-sales service center in Kazakhstan. Previously, in order to comply with regulatory requirements, Canaan Technology established an operating entity for its self-operated mining business in Singapore.

According to Wu Blockchain, Bitmain told miners on June 22 that due to the recent influx of second-hand machines into the market, Bitmain temporarily stopped selling spot machines in order to ease the pressure on customers to ship. In addition, Bitmain has announced a full transfer overseas, and some mid- and senior-level employees are moving overseas.

On the exchange side, Huobi’s OTC block trading area was cleared on June 23, and the platform said it decided to merge the “block trading area” and the “ordinary trading area” into the “trading area”. As of 18:00 Singapore time on June 23, the changes to the accounts of block advertisers were to release all excess margins (180,000 USDT) of all block advertisers, remove all online block ads from the system, and adjust the block ads to ordinary ads. (Golden Finance)