China has decided
to stop cryptocurrency mining in the country citing environmental concerns.
Chinese officials say that the practice is “extremely harmful” and is
jeopardizing the country’s efforts to cut down on carbon emissions. Beijing’s
move comes after The People’s Bank of China, China’s central bank, outlawed all
cryptocurrency-related transactions.

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China has directed
government companies to holistically halt all cryptocurrency mining, according
to a Bloomberg report. Officials fear crypto-mining could raise electricity
prices and are already considering punitive action against organisations
indulging in crypto mining while enjoying power subsidies.

Meng Wei, a
Chinese government spokesperson, told the media recently that the National
Development and Reform Commission (NDRC) plans to crack down on
industrial-scale Bitcoin mining as well as any involvement by state companies.

She added that
mining of cryptocurrency has been associated with prominent risks and called the
crypto market “blind and disorderly”.

China has been
among the few countries that have taken a very stern view of the cryptocurrency
market. This is happening at a time when nations around the world are
considering ways to tap into and regulate the crypto market. El Salvador, a
central American country on the Pacific coast, became the first country to
declare cryptocurrency as legal tender.

India, China’s
neighbour and a country that is seeing wide adoption of cryptocurrency, is also
considering ways to regulate virtual money. Indian Prime Minister Narendra Modi
recently chaired a meeting where he expressed concerns over the use of
cryptocurrency in money laundering and terror financing.

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China, meanwhile,
is looking at crypto as a hurdle in the country reaching its target of
attaining net zero emissions by 2060. Authorities have even blamed cryptocurrency
miners for energy wastage that in turn lead to fatal coal mining accidents. Beijing
further considers crypto disruptive of economic order and has also found it
being used to facilitate illegal asset transfers and money laundering.