TechFlow News According to a recent article in China News Weekly, Chen Weigang, senior supervisor at the Office of Supervisory Board for Key Financial Institutions of the China Banking and Insurance Regulatory Commission (CBIRC), stated that the current move amounts to a comprehensive ban. In fact, trading of virtual currencies including Bitcoin has already been prohibited more than three years ago, and there is currently no cryptocurrency exchange operating legally within mainland China. "Domestic crypto mining remains difficult to completely eliminate, but this latest effort primarily targets corporate mining activities. Control can be achieved through financial audits on both revenue and expenditure: corporate mining will ultimately manifest as increased revenue or profit. If part of a company's profit comes from mining, we can simply disallow such income from being recorded in its accounts, thereby blocking corporate mining operations." Chen said that individual miners who purchase mining equipment, especially in regions rich in hydropower resources, remain a challenge, and how to effectively curb such behavior requires further observation. "But by eliminating large-scale miners, although many small-scale miners remain, their overall volume is relatively insignificant."
Chen Weigang also pointed out that Bitcoin trading overseas is largely a game among institutions and financial conglomerates, whereas in China it is mainly driven by retail investors. "Just like P2P lending, which actually emerged earlier in countries like the UK and the US, participation in China reached an extremely broad scale at its peak. The same applies to the current Bitcoin speculation. Just because something exists abroad doesn't mean it is justified or appropriate within China."
