When the cryptocurrency industry was first launched through the internet, most people did not want to adopt it. Although the cryptocurrency industry had been introduced for the benefit of common people, yet many people hesitated in adopting it.
This is when China emerged as the pioneer country that not only adopted cryptocurrencies but also started mining them. China continued mining cryptocurrencies and the digital asset it mined the most was none other than Bitcoin (BTC).
When China started mining Bitcoin, it did not do it on a small scale but went all out in mining them. This is the reason why the mining sector continued growth in China and went all the way up to the point where it became an empire.
China continued accommodating cryptocurrency mining firms in the country and the crypto-mining sector in the country grew larger. Starting off from 2014 to 2020, the Bitcoin mining sector grew enormously big and China became the largest Bitcoin mining industry.
According to stats, China generated the highest amount of hashrate for the mining of Bitcoin. As the country produced the highest amount of hashrate, it continued mining 65% of the total Bitcoin in the entire world.
Although the government of China continued letting the firm mine Bitcoin in the country, it banned cryptocurrencies in the country back in 2017. However, until May of 2021, China continued reminding its citizens and firms related to cryptocurrencies about the banning of cryptocurrencies.
This meant that China could always take action and shut down mining farms as well as other crypto firms in the country. This is exactly what Chinese regulators did at the beginning of May 2021, when they started cracking down on crypto firms in the country.
They continued shutting down cryptocurrency and Bitcoin farms until the entire cryptocurrency industry was kicked out of the country.
The main regulatory authority that proceeded with shutting down the cryptocurrency mining sector in the country was the People’s Bank of China (PBoC). It is the major regulatory authority in China that seems to be pulling the strings when it comes to cryptocurrency shutting down.
While the cryptocurrency community was hoping that the regulatory authority may show some kind of flexibility surrounding Bitcoin and altcoins, things have turned out exactly opposite to it instead.
The PBoC has claimed that despite all the hype and adoption rates around the world, Bitcoin and altcoins are still worthless. These currencies have no value and have been devised only to impact the economy in a negative manner.
Therefore, they will not allow the usage of cryptocurrencies in the country and they would continue standing their ground when it comes to rejecting cryptocurrencies for as long as possible.