Bitcoin falls as China reintroduces a crackdown on ‘very destructive’ cryptocurrency mining.

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Chinese officials have stepped up their campaign against cryptocurrency mining, which they view as a “extremely harmful” practise that might jeopardise China’s efforts to reduce carbon emissions.

During a news briefing in Beijing Tuesday, Meng Wei, a spokesperson for China’s National Development and Reform Commission, blasted bitcoin mining. According to her, this action consumes a lot of energy and produces a lot of carbon emissions.

National Development and Reform Commission (NDRC), will undertake a “full-scale” crackdown on cryptocurrency mining

According to Meng, the country’s main economic planner. Additionally, she described the bitcoin industry as “blind and disorderly” and asserted that it offered “prominent risks.”

The National Development and Reform Commission would increase the price of any institution found to be abusing its subsidised power to participate in crypto mining (NDRC). Historically, schools, community center, and other public welfare institutions have benefited from the government’s lower electricity tariffs.

Following the comments, the price of bitcoin fell more than 7% to $60,889, its lowest level in more than a week. The NDRC news conference occurred along with the stock’s precipitous decline. The cryptocurrency ether (ETH) plummeted to a two-week low of $4,297 on Tuesday, down more than 8%.

After all, this is only the latest in a series of Beijing-issued warnings directed at bitcoin mining

Chinese authorities have increased their efforts since May, when the country banned bitcoin trading and said that it will supervise mining activity.

According to a report published in April in the peer-reviewed journal Nature Communications, China is responsible for more than 75% of global bitcoin mining.

Although bitcoin’s price fell this week, it is still having a good year. In 2021, the cryptocurrency’s value increased by almost 110 percent. It recently set a new all-time high of $69,000.

China is targeting cryptocurrency for a variety of reasons. Authorities view currencies as a financial risk since they enable people to circumvent tight national capital regulations, and they wish to reign them down. 

Additionally, China’s central bank is implementing a digital version of the yuan, which will give it greater control over money movement and exchange.

Beijing is also exploring the use of cryptocurrency mining to help it meet its goal of becoming carbon neutral by 2060. 

To employ the approach, machines must solve a series of complicated algorithms designed to verify transactions. Power restriction has impacted millions of people in China as a result of the country’s chronic power shortage.

Meng stated during Tuesday’s news conference that China’s current efforts to target mining are “of great significance” to the country’s efforts to reduce carbon emissions and achieve carbon neutrality.

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