In the middle of this year, the Chinese government again opened fire on the world of crypto. Bitcoin (BTC) miners in the country were ordered to pack their things at short notice and moved to other countries.
However, it didn’t stop there. Recently, the central bank of china announced that they were also going to overhaul the trading of cryptocurrencies in China. It is clear that China wants to ban cryptocurrencies from the country once and for all.
Crypto exchanges
By banning the trade in cryptocurrencies many major crypto exchanges have been hit hard. The Chinese market is huge and there are even crypto exchanges that are completely focused on this market.
Many crypto exchanges are therefore forced to close their doors in China. Users have often been notified that their accounts will be closed on December 31, 2021.
The latest example of an exchange that has taken such steps is KuCoin. Chinese users of KuCoin are instructed to withdraw their assets by December 31st before their accounts will be permanently closed by KuCoin.
Among other Huobi, Binance and OKEx have taken similar measures in response to the ruling by the Chinese central bank. These crypto exchanges will also ban Chinese users and will say goodbye to their existing users before the end of the year.
Hash rate restores
For Chinese crypto investors, the radical measures are of course disastrous. However, the global crypto market seems a lot more resilient to the Chinese war on the crypto industry.
When the miners in China suddenly had to leave a few months ago, the computing power plummeted, or hash-rate, from the Bitcoin network. This resulted in a lower network speed. Fortunately, the network is able to adapt to the circumstances and this was dealt with fairly quickly, but the consequences were temporary.
The network now appears to be almost fully operational again. The hash rate of the Bitcoin network is approaching the previous one again all-time high. At its peak, the network’s hash rate was 198.5 EH/s. Yesterday this hash rate was at such a 177.5 EH/s. An excellent recovery!
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