China Bitcoin mining ban incoming? China wants to eliminate bitcoin mining in the country, according to China’s State Planner via a draft list of industrial activities they want to stop. This will put increasing pressure on the cryptocurrency sector.
China is the largest market for computer hardware designed to mine Bitcoin and other cryptocurrencies – even though these activities have previously fallen under a regulatory grey area.
The National Development and Reform Commission (NDRC) said on Monday that it was seeking public opinions on the proposed list of industries that it wants to encourage, restrict, or eliminate. This list was first published in 2011.
The draft includes cryptocurrency mining, including that of Bitcoin, to more than 450 activities that the NDRC says should be phased out as they do not adhere to relevant laws and regulations, were unsafe, wasted resources, or polluted the environment.
They did not stipulate how they wanted to phase out and or eliminate bitcoin mining, meaning that such activities should be phased out immediately. The public has until May 7th to comment on the drafts.
Securities Times, a state-owned newspaper, said on Tuesday that the list “distinctly reflects the attitude of the country’s industrial policy” toward the cryptocurrency industry.
“The NDRC’s move is in line overall with China’s desire to control different layers of the rapidly growing crypto industry and does not yet signal a major shift in policy,” said Jehan Chu, managing partner at blockchain investment firm Kenetic.
“I believe China simply wants to ‘reboot’ the crypto industry into one that they have oversight on, the same approach they took with the internet.”
Chinese Bitcoiners were not surprised by the government’s move.
This is all in the midst of Bitcoin’s astonishing recovery since the 2017 bubble – breaking $5,000 for the first time since mid-November. Analysts and traders continue to be confused and puzzled by the surge.