China's Regulators Act to Ensure Enterprises' Orderly Withdrawal From Bitcoin Mining, Says Report
Dou Shicong
/SOURCE : Yicai
China's Regulators Act to Ensure Enterprises' Orderly Withdrawal From Bitcoin Mining, Says Report

(Yicai Global) Jan. 4 -- China's regulatory authorities have issued a notice to local governments, requiring them to actively guide enterprises within their respective jurisdiction to exit bitcoin mining in an orderly manner and report the work progress regularly, revealed informed sources.

The People's Bank of China held a closed-door meeting yesterday, deciding to rectify bitcoin mines that have non-standard electricity usage conditions, sources speculated, but PBOC did not set a specific time frame for the process as suggested, online media outlet the Paper quoted a local regulator as saying.

However, given that the regulation of electricity is not the responsibility of the financial regulatory authorities, the purpose behind is to guide the withdrawal of mining enterprises, the local regulator clarified.

China has shut down Bitcoin trading platforms operating in the country. Therefore, it doesn't recognize bitcoin mining as a related industry. However, China's current bitcoin mining output ranks first in the world, accounting for 80 percent of the total global bitcoin output.

Many mines previously interviewed by the Paper said that although the government had banned bitcoin trading platforms, they did not intend to withdraw from China, mainly taking into account the low mining cost brought by low price of electricity in central and western China.

China's regulatory authorities demanded all domestic bitcoin trading platforms be shut down last September, following which the three trading platforms have ceased all trading operations by the end of that month.

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Keywords: Bitcoin Mining , Pboc , Shut Down , Cryptocurrency