[Bitcoin Now] Holding at 47 Million KRW... WSJ "Do Not Oppose Beijing"

Strong Punitive Measures Prepared Including License Revocation for Mining Companies in China's Neimenggu Autonomous Region

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] As the leading cryptocurrency Bitcoin maintains its price around 47 million KRW, an analysis has emerged emphasizing the need to pay attention to China's policy stance. The U.S. Wall Street Journal (WSJ) interpreted that China has taken regulatory measures on cryptocurrencies to protect the foundation of the nation.

On the 26th (local time), U.S. economic media CNBC reported that the government of the Inner Mongolia Autonomous Region in China is preparing strong punishments, including revoking licenses of mining companies. The Inner Mongolia government announced that not only mining companies but also internet companies and telecommunications companies related to mining will be punished.

Previously, China banned cryptocurrency trading and holding since 2017 but did not separately sanction mining. Consequently, Inner Mongolia became a mining hub due to cheap electricity and labor costs, but due to excessive power consumption, it began regulating mining from this year. In March, the Inner Mongolia government ordered mining companies to shut down their factories within two months.

Amid China's continued hardline stance, WSJ advised cryptocurrency investors not to confront China. On the 25th, WSJ claimed that China chose a hardline approach to deflate the widespread asset bubbles in society. Under a low-interest-rate environment, apartment prices in regions such as Beijing, Shanghai, and Guangzhou have recently surged.

Environmental issues are also a concern from China's perspective. The Inner Mongolia government reportedly received severe reprimands from the central government for failing to meet carbon dioxide emission reduction targets. WSJ analyzed that carbon dioxide reduction is one of the few areas where the U.S. and China can cooperate, so China will likely make greater efforts to avoid conflicts.

The issue of capital outflow is also a problem caused by cryptocurrencies. According to WSJ, from 2014 over one year, China's foreign exchange reserves decreased by about 1 trillion USD (approximately 1,117 trillion KRW) due to capital outflows. At that time, due to President Xi Jinping's anti-corruption stance, capitalists diverted funds, significantly reducing foreign exchange reserves. WSJ argued that from the Chinese government's perspective, regulations will be imposed to block all possible channels of foreign exchange outflow.

Meanwhile, according to the domestic cryptocurrency exchange Upbit, as of 7:27 AM on the 27th, Bitcoin recorded 47.52 million KRW, up 1.02% compared to the previous day. Although it rose to 49.08 million KRW at 3:38 PM the previous day, it generally maintains the 47 million KRW range.

Altcoins are on the rise. At the same time, Ethereum recorded 3.45 million KRW, up 4.10% compared to the previous day. Additionally, Enjin Coin is showing an increase of over 60%.

This content was produced with the assistance of AI translation services.