Chinese crypto mining braces for regulatory headwinds after a top government body vowed a crackdown on the industry. The news came after a tough week for the industry, which saw power outages in Sichuan and calls for snitching in Inner Mongolia. A Hainan company completed the first cross-border e-CNY transaction for e-commerce.
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The world of blockchain moves fast, and nowhere does it move faster than China. Here’s what you need to know about China’s block-world in the week of May 17-25.
Miningeddon
- On May 21, the State Council’s Financial Stability Committee discussed plans to “crack down on Bitcoin mining and trading” at a meeting chaired by Vice Premier Liu He. Authorities have yet to release specific policies against crypto mining, but some major Chinese companies are preparing to move their operations to North America. (TechNode)
- Mining pool BTC.TOP and HashCow, as well as Huobi Mall, the website where the crypto exchange sells mining pool services, halted all or part of their China operations following the State Council Committee’s statement. (Reuters)
- The announcement also sparked a sell-off of stablecoin USD Tether against the Renminbi on over-the-counter desks, which China’s miners rely on to convert crypto to traditional currency. (The Block)
Minerdämmerung
- Three Chinese finance industry bodies reiterated a 2017 ban prohibiting banks and payment institutions from offering crypto-related services. Bitcoin briefly plunged to $30,000 when the news was reported in English. (TechNode)
- The Development and Reform Commission of Inner Mongolia set up a hotline, email, and mail address for the public to report crypto mining operations. The regional government is considering a total ban on crypto mining amid a push to reduce electricity use. (The Block)
- The hashrate for major Chinese mining pools dropped by as much as 23% on May 19, before mostly recovering. The drop has been widely attributed to power outages in Sichuan. (8btc.com)
The digital yuan
- Changsha launched a second digital RMB lottery May 22 to distribute RMB 40 million of the digital currency. The lottery is supported by the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Construction Bank of China, Bank of Communications and Postal Savings Bank, Hunan Rural Credit Union, and Bank of Changsha. (Rednet, in Chinese)
- A Hainan company completed the first cross-border e-CNY transaction for e-commerce, according to a statement May 18. (People’s Daily Overseas Network)
The blockchain stocks
Chinese blockchain stocks outperformed their international counterparts last week amid falling Bitcoin prices. (Bloomberg)