China wants to ban bitcoin mining
- The government included cryptocurrency mining in a list of industries under review.
- The public opinion is received until May 7.
The Chinese government wants to ban bitcoin mining activities, according to the draft list of industries submitted by the National Development and Reform Commission (NDRC) on Monday. The agency is seeking a public opinion on the industries it wants to promote, restrict or eliminate since 2011. The feedback is welcome until May 7.
China has been the world’s largest market for cryptocurrency mining equipment even though these activities appeared to be outside the law in the country.
While the list itself does not contain either a target date or a particular plan for eliminating cryptocurrency mining, it reflects the negative attitude of the country’s authorities towards digital assets and related activities.
The cryptocurrency sector fell out of grace with Chinese government in 2017. The regulators started to ban initial coin offerings (ICOs) and shut cryptocurrency trading platforms in 2017.
In 2018 the Chinese officials outlined a plan to discourage cryptocurrency mining as this process consumes great amounts of power. While no legislation has been adopted yet, a lot of mining companies were also forced to move outside the country.
The news might have a negative connotation for the industry as it means that one of the largest global economies is not ready to embrace crypto and choose a highly restrictive approach.
Author
Tanya Abrosimova
Independent Analyst
