There have been a lot of countries and jurisdictions that have either banned or severely restricted cryptocurrencies over the last few years. China is just one of them.
Almost every country that doesn’t allow people to buy and sell things with money has banned cryptocurrency. Law Library of Congress released a summary report for 2021 in November, and it says that 42 other countries have “implicitly banned” digital currencies by restricting the ability of banks to deal with crypto, or by banning cryptocurrency exchanges.
There have been a lot more countries and jurisdictions that have banned crypto, either completely or implicitly, since a report on the subject was first made public in 2018.
They say cryptocurrencies are being used to send money to illegal sources and say that the rise of crypto could cause their financial systems to be thrown off by the rise of crypto.
There aren’t many governments that want to ban crypto, but a lot of them are looking into how to regulate digital currency, like the US. Cryptocurrency is what the head of the SEC, Gary Gensler, has called it.
“Wild West” and said he wants to put more rules on digital currencies. An expert in cryptocurrency was hired by Gensler last week.
When China banned crypto last year, it did so in different stages, which is how it did it. In May, the country made it illegal for financial institutions to do anything with crypto. There was then a ban on crypto mining at home in June, and then the government made it illegal to buy or sell cryptocurrencies.
The world’s second-largest economy used to be a leader in mining for cryptocurrencies, but the government’s moves against them caused a lot of people to sell before prices stabilized.
A government official in China said that they were worried about crypto mining’s effect on the environment and people who used digital currencies for fraud and money laundering, among other things. The country is now trying to get people to use their own digital currency, the yuan.
In order to figure out where Bitcoin miners are, Cambridge looks at their IP addresses. Miners can hide their locations by using virtual private networks (VPNs) or proxy services, though.
If you’re a Bitcoin miner and you don’t know where your IP address comes from, Cambridge says that you’re more than likely to get it from Germany and Ireland, even though there isn’t much evidence that they have large mining operations.
Chinese state media said on Sunday that about 10% of the crypto-related businesses that were in China before the ban are still there.
It looks like Beijing is more determined than ever to get rid of any crypto mining businesses in the country, especially in the wake of a country-wide energy shortage that it partly blamed on the presence of crypto miners.
Meng said that China’s government will step up its efforts to find out if state-owned businesses are still mining crypto.
It will also be the job of government agencies at all levels to keep an eye on and punish state-owned businesses that support mining. Meng didn’t say what the punishments might be.
Meng also said that Beijing would look into whether schools, hospitals, community centers, and other public institutions that get power from the government are mining crypto.
People who break China’s crypto mining ban will pay more for electricity if the probes find them, she said.
“Mining virtual currencies use a lot of energy and releases a lot of carbon dioxide.”
Industrial and technological progress are not helped by the rise of China, Meng said. This has a big negative effect on things like high-quality economic and social progress, energy conservation, and emissions reduction: Crypto’s “blind and disorderly” development.
Beijing kicked out Xiao Yi this week, who was vice-chairman of the Jiangxi Provincial Committee of the Chinese People’s Political Consultative Conference. This is another sign that Beijing is against crypto.
His official job kicked him out of the Chinese Communist Party. He was accused of breaking China’s crypto mining ban, among other things.
“[Xiao] used his power to get businesses to do things like “mining” virtual currencies that don’t meet the country’s industrial policy,”
On Sunday, China’s Central Commission for Discipline Inspection, the country’s anti-corruption watchdog, said in a statement that it had found a lot of corruption in China.