China’s Central Bank blocks 11 crypto companies in Shenzhen

China has fiercely opposed the crypto industry in recent months. This continued yesterday when it was reported that the Shenzhen branch of the people’s Bank of China, China’s Central Bank, had “cleared” 11 companies for illegal cryptocurrency activities. 

The PBOC’s Shenzhen Branch is planning to “fix” 11 companies suspected of “carrying out illegal activity in the virtual currency,” according to the state publication Shanghai Securities Journal. 

The Shanghai Securities Journal also recommended that NBC carry out a “pilot project” aimed at informing financial consumers about the technology and preventing risks. 

China struggles with crypto
The news follows ongoing crypto pressures in China.

Although cryptocurrency trading has been illegal for years, cryptocurrency miners have been ordered to cease operations and leave this summer. The move has severely damaged China’s rapidly developing mining ecosystem. Last year, China owned two-thirds of the global mining industry, according to the University of Cambridge. Already in April 2021, this figure has fallen below 50%.

Cambridge University data. Picture: Cambridge University
NBK also ordered banks and other payment companies to stop all crypto-related issues. The OTC (OTC) industry was also affected, with financial institutions being instructed to stop serving these platforms. 

While many in the crypto industry have complained about the recent crackdown on the crypto industry in China, there may not be a Hood without goodness in the country.

Earlier this year, the Bitcoin network’s annual energy consumption reached 130 terawatt hours. In May, that meant the bitcoin network’s carbon footprint was equivalent to 61 billion pounds of burnt coal overall, the average electricity consumption in 9 million homes a year, or the 138 billion miles an average passenger vehicle travels. 

The Hard Truth About Bitcoin energy consumption
Today, the annual energy consumption in the bitcoin network has decreased

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