Worries about cryptocurrencies have intensified after some Bitcoin (BTC) miners halted their China operations following Beijing’s crackdown on cryptocurrency mining and trading, Reuters reported Sunday.
What Happened: Huobi Mall, part of cryptocurrency exchange Huobi, said it has suspended crypto-mining services to mainland Chinese clients and will focus on overseas businesses, according to the report.
Crypto mining pool BTC.TOP also reportedly said it has suspended its China operations due to regulatory risks, while crypto miner HashCow announced it will stop buying new bitcoin rigs.
See Also: How to Buy Bitcoin (BTC)
Why It Matters: The cryptocurrency market is seeing a major selloff in recent weeks —amid regulatory concerns emanating from China and Tesla Inc. (NASDAQ:TSLA) fueling environmental concerns with the mining of cryptocurrencies — that has seen the value of large-cap cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) halved.
The recent sell-off in digital currencies also comes after the U.S. Treasury said last week it will require stricter cryptocurrency compliance with the Internal Revenue Service.
China is now testing its own digital currency called the digital yuan in major cities across the country. The digital currency, to be issued by the People’s Bank of China (PBOC), is intended to replace the cash and coins in circulation.
Price Action: Bitcoin is down 45.9% from its all-time high of $64,863.10 reached on April 14. The apex cryptocurrency is 3.6% lower over the last 24 hours and is trading at $35,462.90 at press time.
Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is down 2.4% during the last 24 hours and is trading at $2,157.56 at press time. It has fallen 50.9% from its all-time high of $4,362.35 reached on May 12.