HSBC Says Crypto Regulation Not New, Chinese Bitcoin Miners Uncertain

Sahaj  |  May 24, 2021

Chinese Bitcoin miners are uncertain after China suspends crypto mining operations on Monday, HSBC says that the latest move by China is not new. Huobi Mall and BTC.TOP made an announcement of the suspension of their Chinese crypto mining operations and Paul Mackel of HSBC has suggested that the recent move is not a new development.

Chinese Government Tightens Crypto Regulations, Bitcoin Miners Are Uncertain

China is a dominating force in the Bitcoin mining space and the country accounts for around 70% of the global Hash Rate

Well, the recent announcement by the Chinese government has led to uncertainty among the companies that are associated with the crypto mining business.

In accordance with the latest report published by leading market aggregators, Bitcoin companies such as BTC.TOP and Huobi Mall have suspended their crypto extraction operations in China due to the uncertain regulatory environment. 

Wu Blockchain, the crypto and Bitcoin analyst of Blockchain said:

“The prices of the Hong Kong-listed companies of OKEx and Huobi fell by 14.9% and 20.1%, showing the panic of stock investors before the Chinese government’s next policy. Huobi has already applied for multiple crypto funds. ​But, their listed companies do not include exchanges.” 

Liu He and State Council on Cryptocurrency Regulations

In a statement released to CNBC, Paul Mackel said:

“There’s been some messaging there for some time. This is not a new development, as far as I’m concerned, they’ve been more cautious on cryptocurrencies.”

Liu He, the Vice Premier of China said that tighter regulation on cryptocurrency is needed to protect the financial system and released a statement:

“Crackdown on Bitcoin mining and trading behavior, and resolutely prevent the transmission of individual risks to the social field.”

However, the Founder and CEO of cryptocurrency wallet Ballet, Bobby Lee, does not think that BTC will continue to tank despite the authoritative pressure of China.

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