It was just the beginning of May when China had started issuing warnings and intimations around the cryptocurrency related activities in the country. It had reminded the entire cryptocurrency community and related firms that the usage of cryptocurrencies was prohibited.
While many thought that it was just another intimation from the Chinese Government like previous intimations, close observers had predicted that this time, Chinese authorities were serious.
Turns out, the predictions/speculations made by the observers were correct as Chinese regulators initiated their crackdown against cryptocurrency dealing firms. Since then, China has taken down several firms and their products because they were dealing in cryptocurrencies.
The mining sector in China is the one that has taken the most amount of damage due to the recent crackdown. While some analysts speculate that this is an action that China could always take under the law it passed back in 2017. Majority of the analysts have something else to say about China’s recent crackdown.
As per majority of the analysts, China is doing this because it is getting close to launching its digital yuan. Therefore, it wants its entire population focused on digital yuan rather than investing their money in cryptocurrencies.
Furthermore, the regulatory authorities are very much concerned about country’s economy. This is because they have tracked that billions of dollars’ worth of revenue has left China through the cryptocurrency channels.
This way, the Chinese businessmen and investors are not only successfully sending their money out of China, but they are also evading taxes. Therefore, money laundering has become one of the major problems in China at present and that is due to the cryptocurrencies.
This is the reason why the Chinese authorities are constantly cracking down on cryptocurrency firms and their activities. Just recently, the Chinese authorities have targeted the Sichuan Province for cracking down on cryptocurrency related firms.
The reports confirm that the local Bitcoin (BTC) mining farms in Sichuan province have been halted for an indefinite amount of time. The local media sources in Sichuan province have revealed that the first city in the province to have issued such order is Ya’an City.
The Ya’an City authorities have reportedly issued an order for all cryptocurrency mining firms and centers to stop their operations at once. They notices issued by the authorities suggest that this has been done for the purpose of examination of the Bitcoin mining operations.
According to the local media sources, it is currently unclear whether the mining centers have been closed temporarily or on permanent basis. It is quite unclear at the moment whether the miners will be allowed to continue their operations or not.