Bitcoin dips after China intensifies crypto crackdown

Bitcoin dipped in value to a two-week low after another bout with regulators in China.

Chinese lawmakers have ramped up their actions in curtailing bitcoin mining and the provision of cryptocurrency related services.

On Monday (21 June), the People’s Bank of China ordered financial institutions, including Alipay, to cut off cryptocurrency transactions.

While over the last week, a widespread crackdown on cryptocurrency mining farms in China has sent the market into further decline.

According to state media reports, authorities shut down vast mining operations in Sichuan province, which accounted for almost 90pc of China’s crypto mining activity, by ordering electricity suppliers to cut off their supply.

AFP reported that it is a “complete clean-up” on the part of authorities. It follows a similar crackdown in May.

For years China has been a hotbed for massive crypto mining server farms that chug through power to verify transactions and create new coins.

It fits into a wider push against cryptocurrency by China, further evidenced by the government’s signal last month that it was time to “crack down on bitcoin mining and trading behaviour”.

As of this morning (22 June), bitcoin is valued at $32,100, down from $40,000 a month ago.

Any moves by China tend to have ripple effects across the crypto landscape. In particular, any disruptions to mining could impact on supply of new bitcoin and processing power for transactions.

Another side effect of the mining crackdown has been the drop in prices for GPUs used by miners in the last few days.

The regulatory clampdown on financial services companies could ultimately make bitcoin and other cryptocurrency unusable for many in China if no service providers exist. This has all contributed to bitcoin’s drop in value.

China has been the fiercest when it comes to cracking down on cryptocurrency ...

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