In 2021, the Chinese government launched its most significant battle against cryptocurrencies, altering the global distribution of miners. Miners relocated to neighboring countries, especially to the United States region, under the pretext of China’s carbon targets. We all remember the operations conducted on crypto mining facilities.
China to Investigate Cryptocurrencies
Yuan Xiaobin, a member of the Chinese People’s Political Consultative Conference National Committee and chairman of the Zhonghao Law Firm Management Committee, stated that more research is needed in the blockchain field. WuBlockchain, a popular crypto journalist in Asia, detailed the local news as follows;
“Chinese legislators have proposed accelerating legislation related to emerging technologies like blockchain, providing clearer legal guidance and policy environment, and conducting cryptocurrency research related to technological innovation.”
In other words, the prejudice-driven ban in the country has not yet found full support in politics. If this is accepted and more constructive work on cryptocurrencies begins, we could see the growth of Asia-backed crypto multiply.
The strong demand in Asia during the ongoing crypto rise is undeniable. Especially since Hong Kong allowed individual crypto currency platforms, crypto has been experiencing good days since last June.
China and the Crypto Ban
In 2021, we even saw days when whistleblowers reporting crypto mining facilities were rewarded. China definitively announced that crypto mining would be phased out in the country due to its energy-intensive nature. While doing so, it claimed to consider its carbon emission neutral target, but it continues to use more coal than before to produce energy.
Despite repeatedly banning cryptocurrencies and mining over the years, these measures have not seen an end. Moreover, the Digital Yuan did not reduce the regional demand for crypto. In the middle of last year, Hong Kong, as a Chinese Autonomous Region, opened the doors to individual investors for crypto, enabling many investors from mainland China to establish companies there and officially make their investments.
