The blanket ban of cryptocurrencies in China is one of the biggest topics that are discussed on forums and media outlets around the world. The Chinese government is shutting down mining operations in one after the other provinces. The latest province to join the list is Yunnan. At the beginning of June, the crypto ban was limited to the investigation of mining rigs by the authorities.
US Democratic Party Member Calls for a Bitcoin Ban and Crypto Mining Crackdown
Brad Sherman is a congressman and a Democratic Party representative. He was speaking at the House Financial Services Oversight Subcommittee hearing on June 30, 2021. He claimed that he would instead allow people to put their money into the lottery rather than investing in cryptocurrencies at the hearing. Talking on the subject of Bitcoin, he claimed that it is a highly volatile asset class.
He further added that if a person wants to retire at 49 and put most of his savings into crypto, the chances of him getting a good return are less than 50%. Investors put their money into digital assets through platforms like Coinbase; the enterprise would always make money. On the other hand, the investors stand a greater chance of losing their savings. He further added that digital assets are a tool for anarchists who want to keep the option for tax evasion open.
China Keeps Shutting Down more Cryptocurrency Projects in the Region
The latest crash in the Bitcoin market has been attributed to the mining ban in China. At first, the authorities ordered a temporary seizure of operations for conducting research. However, as time passed, the ban gained a permanent nature. According to an article published in the Chinese media outlet Star Market, The Bureau of Energy in Yunnan was also not planning for a blanket ban initially.
The Chinese intelligence units have also reported in the past that a lot of mining operations were using illicit methods for creating energy. As the center of hydroelectric power generation, Yunnan was considered a central hub for miners. Zhang opines that if the ban continues, it will result in more than 90% of rigs going out of commission. In addition, it could mean that Bitcoin hashrates can dwindle further.