China aims to eradicate the bitcoin mining industry due to concerns about its excessive electricity consumption and potential financial risks, the Financial Times reports. The move reflects Beijing’s judgment that cryptocurrencies are not an important strategic industry.
A document seen by the FT details that the central government has set up a multi-agency task force that has instructed provincial governments to “actively guide” companies to exit the cryptocurrency mining industry. China also recently banned initial coin offerings and shut down domestic cryptocurrency exchanges.
More than three-quarters of the world’s bitcoins are currently mined in China, where many remote regions offer extremely cheap electricity, according to Liao Xiang, chief executive of Lightningasic, a Shenzhen-based mining operation.