The Chinese province of Sichuan hopes for leniency
After the crash last week, Bitcoin continues to work its way towards the 40,000 mark. After the crypto reserve currency was only able to briefly break through this important hurdle yesterday, the store of value is now back in a lower gear.
Some investors explained the sudden crash of various cryptocurrencies with new crypto bans in China and tougher crackdown on Bitcoin mining. It is estimated that the Chinese mining accounts for 55 % of the international hash rate. In order to take decisive action against climate-damaging miners, the Chinese government in the province of Mongolia only adopted new rules a few days ago, according to which Bitcoin miners are threatened with temporary banishment from China's credit if they damage environmental regulations.
In addition to Inner Mongolia, Sichuan is also one of the country's most important mining hotspots. According to media reports, the energy regulator would like to discuss the situation there on June 2nd. However, since Sichuan has enormous capacities, miners in the region are now hoping for leniency.
SEC Wants Further Regulations For Crypto Space
Meanwhile there is news from the USA. The head of the SEC called for further regulation for the cryptocurrencies at a hearing before the Committee of the House of Representatives. Currently, due to the sheer increase of coin plans around Bitcoin, Ethereum, it is hardly possible to implement consumer protection measures.
They now want to work with the congress to better protect investors. To what extent these new rules could look like for Coinbase is so far unclear. It is also uncertain when the SEC will deal with this issue.
Cryptocurrencies are nothing more than a document for the private sector to print money. It is also critical of forecasts in which Bitcoin could overtake gold as a store of value.
The contents of this article are for informational purposes only and are not investment advice.