China is going to ban mining, Korea imposes restrictions on bitcoin, Microsoft and Visa refuse cryptocurrency

China is going to ban mining, Korea imposes restrictions on bitcoin, Microsoft and Visa refuse cryptocurrency

China is going to impose a ban on the mining of cryptocurrencies. About 70 percent of all cryptoform based in China due to low energy prices, cheap labor and a large number of companies that create microchips and equipment for obtaining bitcoin.

Notice from China special rectification on risks in Internet Finance department to local government to make a plan before Jan 10th — “ lead mining factories quit gradually” msgstr «» #btc #bitcoin #BitcoinMining with Central Bank official Chop. Prepare for the roller coaster!!!!

— 🎀 (@cryptovenus) January 5, 2018

«Notice from Chinese special office for risk in the field of Internet Finance to local government to plan up to 10 January — «the leading mining plants gradually need to close» #btc #bitcoin #BitcoinMining with the official logger of the Central Bank. Prepare for a roller coaster !!!!».


In the published documents it is clear that the Chinese authorities have appealed to regional officials that «result in the gradual closing mining factories». This course was selected by the Ministry of Finance people’s Republic of China in respect of concerns about the reliability of the cryptocurrency and the potential risks.

Speaking at a financial forum in Shanghai, Deputy Governor of the people’s Bank of China pan Gongsheng said, «If a few months ago we closed down bikinskii exchange transactions and not imposed a ban on ICO, if China still had more than 80% of global trade in bitcoin and fundraising ICO, what happened today? Thinking about it make me fear.»

The imposition of restrictions on the supply of cryptoform electrical energy has led to the need for mining companies to search for alternative countries.

«We chose Canada because of its relatively cheap costs, the stability of the country and politics,» — said in an interview with Bloomberg Jiang Jouer, founder of BTC.Top. He also considered an alternative to Iran and Russia.

Parallel to the cryptocurrency world shook information about a number of failures of large firms or even States to use bitcoin.

This Monday , the Central Bank of Israel statedthat it does not recognize virtual coin currency, and it’s too difficult to develop regulation of bitcoin while monitoring risks.

And last week, the market Regulator of Israel banned the trading companies whose activity is connected with bitcoin and cryptocurrencies.

Nadine Baudot-Trachtenberg, the head of the Central Bank of Israel, said, in studying the question of the cryptocurrency came to the conclusion that it is impossible to give recommendations on the use of cryptocurrencies as a full-fledged regulator has not yet developed the rules of the game in the field and for Bank customers too complicated and unreliable bitcoin use.

«There is a real difficulty in making recommendations to the system regarding the correct way to assess, manage and control risks inherent in such activities,» she said. «In addition to the risks to the client are the risks of the banks themselves».

South Korea, which is one of the biggest sites for trading bitcoin, reported the intention to completely ban the opening of new anonymous accounts for cryptocurrency wallets, and regulators be allowed to interrupt the operation to transfer amount of cryptocoins in cases where they deem it necessary.

According to Reuters, the South Korean government issued a statement which said that «we repeatedly warned that the virtual coins can’t play the role of real currency and can lead to high losses due to excessive volatility.»

The announcement of the ban led to the fall of Bitcoin at$ 1000 due to the large influence of the Korean market for money.

But the Egyptian Grand Mufti has banned trading operations associated with bitcoin, citing the fact that bitcoin is prohibited by Islam. «Bitcoin is prohibited in Sharia because it causes harm to individuals, groups, and institutions,» said the fatwa, as reported by the Egyptian daily newspaper «Ahram».

Along with States from cryptocurrency refused and a few large companies. The company Microsoft, platform content distribution Steam and Visa announced the termination of work with cryptocurrency because of its high commissions and volatility.

The company Microsoft announced the temporality of such a measure, and VisaEurope demanded to cease cooperation with WaveCrest, a cryptocurrency payments platform.