After the Internet financial risk special group meeting on 20 November 2017, local authorities, backed by the Central Bank of China, in the beginning of 2018 began to close all cryptocurrency mining operations in China. As was explained by the Chinese decision-makers, cryptocurrency mining operations that nowadays create a huge part of the worlds supply of Bitcoin constitute an enormous risk for the Chinese internet finance. What is more, cryptocurrency mining needs a big amount of resources –both natural and human, and encourages the speculative cryptocurrency.
Many cryptocurrency enthusiasts, especially from the remote parts of China, already started closing their mining farms, although there is no urgency in it. Professionals argue that such a radical step will significantly influence Bitcoin price and market capitalization volumes.