The Chinese finance committee has emerged with reports that it will restrict Bitcoin mining in the country. The new developments that emerge also include a wide variety of other financial risks.
Bitcoin is shaken by the second bearish news from China in less than a week.
This time around, China’s finance committee added Bitcoin mining as a key industry to monitor in an attempt to “steadfastly prevent and control financial risks.”
The meeting was led by Liu He, the deputy prime minister of the State Council of the People’s Republic of China. Of the four deputy prime ministers who reported to the prime minister of the State Council, Liu He is in the bottom row. He is also the director of the Chinese Communist Party Central Financial and Economic Affairs Commission.
The news includes a list of other activities outside of Bitcoin mining, including reforming small and medium-sized financial institutions, blunting the effects of illegal securities activities, and “effectively responding to imported inflation”.
This seems to have been priced by the market, as the Council of State was the first to speak openly about Bitcoin mining.
Despite the wide range of report content, Bitcoin fell 12%. The crypto money, which started the day well, dropped from the level of 42,000 and dropped to $ 37,000 as it was preparing for the news broadcast.
On Wednesday, similar news pulled the leading cryptocurrency to $ 30,000. At the time, a group of three payment and financial institutions reiterated the central bank’s first ban in 2017. The three associations were China National Internet Finance Association, China Banking Association and China Payment and Clearing Association.
Sources suggest that the latest crackdown on Bitcoin mining will be limited to operations that do not use hydroelectric power.
The number of coal-fired mining equipment in China is significant. A flooded coal mine in the Xinjiang region last month triggered a sharp drop in Bitcoin’s hash rate, which is used to determine how much computing power the Bitcoin network uses.