Bitcoin dives as China widens crackdown on crypto mining

Bitcoin dives as China widens crackdown on crypto mining

BEIJING: Bitcoin tumbled more than 10 per cent Monday after China broadened a crackdown on its massive cryptocurrency mining industry with a ban on mines in a key southwestern province. Chinese mines power nearly 80 percent of the global trade in cryptocurrencies despite a domestic trading ban since 2017, but in recent months several provinces have ordered mines to close as Beijing turns a sharp eye to the industry. Authorities in the province of Sichuan ordered the closure of 26 mines last week, according to a notice widely circulated on Chinese social media and confirmed by a former bitcoin miner.

The price of bitcoin sank to as low as $32,309. The unit has taken a severe hit in recent weeks, having hit a record near $65,000 in April, partly because of Beijing's crackdown. The notice reportedly instructed power companies to stop supplying electricity to all cryptocurrency mines by Sunday. It vowed a "complete clean-up“ and ordered local governments to carry out a "dragnet-style investigation“ to find and shut down suspected crypto mines.

The province represents one of the largest bases for mining in the country. A former cryptocurrency miner told AFP they had "closed everything“ in line with the requirements in recent