China is going to restrict bitcoin miners

China is going to impose restrictions on bitcoin miners to hinder their activities. Local governments are being asked to crack down on mining companies in order to shut down their operations.

Authorities finalized their plans during a meeting of the Chinese central bank, Bloomberg news agency reported. Officially, the reason is that bitcoin miners consume too much power, and this could lead to disruptions in society. Local authorities must ensure that miners are given an ‘orderly’ way to shut down their operations.

China is a popular location for large-scale mining operations due to the low cost of electricity in the country. Large companies are now considering choosing another location to continue their operations. For example, Bitmain told Bloomberg that it has moved its headquarters to Singapore and its mining operations to Canada and the United States.

It is not the first time that the Chinese government has attempted to impose restrictions on cryptocurrencies. It previously restricted bitcoin exchanges in the country, and banned initial coin offerings. Incidentally, other countries are also considering imposing restrictions on bitcoin and other digital currencies. Many governments have reservations about cryptocurrencies because control is made more difficult due to the decentralized nature.