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Chinese Bitcoin miners could face restrictions

China has long shown excellence in the field of cryptocurrency mining because of the excess of power in the country.

05.Jan.18 12:00 PM
By Daria Zaytseva


Chinese Bitcoin miners could face restrictions

Some of the largest mining groups in the world, including such as Bitmainís Antpool, BTCC, BW mining and, manage large mining operations in the country. Mining is the basis of cryptocurrency because computers are needed to verify transactions stored in Blockchain, by solving cryptographic algorithms.

As cryptocurrencies continue to grow around the world, the demand for the network is growing. That means countries, where energy is cheap, are the most attractive to miners. Last year, China reduced its energy production due to excess energy in its energy system, as shown by the National Bureau of Statistics of China.

This surplus has led to a reduction in the cost of energy for consumers in China, which is a boon for mining operators in the country. Nevertheless, China has previously threatened to cut off the cheap power supply to miners based near hydroelectric power stations in the country.

According to sources, the People's Bank of China (PBOC) intends to ensure that local regulators monitor and even limit the use of energy by miners in some regions of China.

The source also reports that on Wednesday, January 3, at a closed-door conference, PBOC outlined plans, as the country makes plans to transfer surplus energy to regions of the country that have higher energy needs.

Last year, the ban on exchanges between ICO and cryptocurrency made for a tight environment for virtual currency in the country.

Nevertheless, mining operations continue, but if these rules are followed, operators may face tight control in terms of energy use.

As reported in December 2017, energy sharing in global mining is more than in many African countries, which underlines the energy requirements for mining processes.

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