China intensifies its regulation of the cryptocurrency trade by going after online platforms and mobile applications .
Citing people familiar with the matter, Bloomberg reported that China's regulators are considering Internet-based platforms and mobile applications that provide clients with exchange rate services. Last year, Chinese authorities banned the cryptocurrency trade, but recently the country has been looking for alternative cryptocurrency trading places. Chinese regulators want to prevent people in the country from accessing extraterritorial and local platforms that allow the trade of cryptocurrencies. The sources could not provide more details on the types of policies that China will implement.
The government also persecutes companies and individuals that allow the trade of cryptocurrencies through the provision of services such as market creation, settlement and payment. Small point-to-point exchanges (P2P) are not on the radar of the Chinese government. News of the country's escalation actions sent the price of bitcoin to a lower level in commerce. According to Bloomberg, cryptocurrency recently fell 1.2 percent in London to $ 13,580.50.
Since last year, China has been suppressing the bitcoin trade, banning exchanges and initial offers of currencies (ICO). Last week, it was after the massive bitcoin mining industry in the country. On the orders of a multi-agency working group, the regional authorities have been instructed to "actively target" companies that currently extract bitcoin in their region of activity, according to documents reviewed by The Financial Times . ]
The momentum recently coined to reduce mining problems due to the fact that the complex computing task required to "mine" bitcoin uses a large amount of energy. As of 2017, the demand for electricity for bitcoin mining increased to around 20.5 terawatts per hour per year, according to BNEF. That's equivalent to more than half of the 38 terawatt-hours of electricity used annually by the world's largest miner (as in literal mining, mining), BHP Billiton Ltd.