More Chinese provinces issue bans on cryptomining

Small toy figurines are seen on representations of the Bitcoin virtual currency displayed in front of an image of China's flag in this illustration picture, April 9, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

Authorities in China's northwestern province of Qinghai and a district in neighbouring Xinjiang ordered cryptocurrency mining projects to close this week, as local governments put into practice Beijing's call to crack down on the industry.

China accounts for a over half of global bitcoin production, but some miners have been considering moving elsewhere after the State Council, China's cabinet, vowed to clamp down on bitcoin mining and trading last month. read more

"We are standing at an inflection point for the mining industry here in Asia," said Lei Tong, Managing Director Financial Services at Babel Finance, a Hong Kong-based crypto lender and asset manager.

"Many miners now are seriously re-evaluating their future operational plans as the current regulatory environment is unfavorable for their growth and the scaling of their business."

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