With the Sichuan province shutting down the blockchain platforms, Bitcoin, Ether, and Doge took a hit when crypto miners contemplate a move elsewhere.

With the government of China extending its ban on cryptocurrency and cryptocurrency mining to include Sichuan province last Friday, cryptocurrencies like Bitcoin, Ethereum, and Dogecoin saw a significant drop in value as crypto miners were forced to shut down their operations. Sichuan is the latest province to enact a cryptocurrency mining ban along with Xinjiang, Inner Mongolia and Yunnan provinces, which banned cryptocurrency mining earlier this year. Until recently, China was home to the majority of the world’s crypto mining operations, where crypto miners made the most of the country’s cheap electricity to power their mining operations.

China banned financial institutions from engaging in any cryptocurrency-related business in May. An edict issued by the China National Internet Finance Association, the China Banking Association, and the China Payments and Clearing Association cited the lack of “real value support”Behind crypto assets and security risks as reasons for the ban. As a result, the value of the cryptocurrency pools fell significantly before recovering in the following days.

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After the ban in Sichuan, CNBC reports The People’s Bank of China (PBOC) ordered major lending companies such as the Industrial and Commercial Bank of China and the Agricultural Bank of China, as well as Alipay, Alibaba’s mobile payment service, to deny all services to anyone. account involved in the use of cryptocurrencies. A statement issued by PBOC saying “The attendees responded that they will attach great importance to the subject and that they will not carry out or participate in activities related to virtual currency.. “In the wake of these bans on cryptocurrency mining and trading, Bitcoin’s value dropped to $ 29,317, Ether dropped to $ 1,730, and Dogecoin was worth 16 cents, according to Coindesk.

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What does it mean for miners

Since then, the values ​​of each currency have risen again, but further declines are possible as China’s crackdown continues. According to the Global times, China’s ban on crypto mining operations could lead to the short-term shutdown of up to 90 percent of Bitcoin’s global mining capacity. With the arrival of the latest wave of regulations, many crypto miners will relocate their operations to other countries where the legislation has not caught up. Texas Governor Greg Abbot has repeatedly voiced his support for bringing crypto mining to Texas, despite the state’s power outages experienced earlier this year.

Various industries in the US are already trying to get into crypto assets and the IRS is currently looking for ways to better regulate cryptocurrencies. Earlier this year, the IRS detailed new guidelines on how it would handle cryptocurrencies in The tax compliance agenda of the American families plan. In the coming months, the United States will likely become the destination for many crypto miners leaving China, so it is more vital than ever that potential investors understand the impact of crypto mining on energy consumption and the environment.

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Fountain: CNBC Global times, Coindesk

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