More local governments in China are taking actions to crack down on cryptocurrency mining and trading, with Ganzhou, a prefecture-level city in the eastern province of Jiangxi, having deployed checks and inspections on local businesses.
Fast facts
- The economic development zone in Ganzhou announced that it is working with the central bank’s local branch, the city’s financial regulator as well as the local public security department to carry out inspections at a local industrial park.
- The local authorities said they have issued risk warning letters to companies in the area and checked their business and licenses.
- The local crackdown underscores an ongoing nationwide clampdown on the crypto industry as China on Sept. 24 outlawed crypto mining and trading. China has repeatedly criticized the “speculative nature” of cryptocurrencies, “resulting in criminal activities including money laundering, illegal fundraising, fraud and pyramid schemes,” the central bank reiterated in another statement in September.
- China’s crypto presence has shrunk even before the country’s September ban. The U.S. has overtaken China’s leading position in cryptocurrency mining, according to the latest data from the Cambridge Bitcoin Electricity Consumption Index, compiled by the Cambridge Centre for Alternative Finance. At the end of August, the U.S. accounted for 35.4% of the global hashrate share — which refers to the level of computing power required to mine — representing a significant surge from 16.8% at the end of April.