Chinese Government Looks to Ban All Bitcoin Mining Activities From Within Its Borders

According to an all-new report released by Reuters, the Chinese state planner has just released a draft of all the industrial activities it is looking to slowly weed out from within its economic framework. In this regard, it should be pointed out that the ‘bitcoin mining industry’ figures quite prominently on this list — thereby showcasing the government’s clear bias against this otherwise burgeoning sector.

More On The Matter

As per a circular issued by the Chinese National Development and Reform Commission (NDRC) on Monday, the government body has made it clear that it is currently seeking public opinion on a “revised list of industries” that the masses would like to either see proposer, restricted or eliminated altogether.

In the latest iteration of the aforementioned draft, the cryptocurrency mining industry, as well as some other crypto related activities, stand out quite blatantly. On the matter, the NDRC also stated that the mining industry was being added to the draft due to its unsafe and non-environmental friendly nature.

Not only that, a spokesperson for the agency also added that a host of Chinese mining operators did not adhere to relevant laws and regulations associated with this domain.

Lastly, we need to point out that neither a stipulated date nor a POA (plan of action) as to how the above-mentioned activities will be carried out has been provided to the public — despite the government wanting to phase out the industry immediately. As things stand, the general public has up until the 7th of May to comment on the draft and recommend changes if they wish to do so.

Other Key Specifics to Bear in Mind

  • According to a government-owned media publication called the ‘Securities Times’, the draft very clearly highlights China’s stance as well its industrial policy towards the digital asset sector.
  • As many of our readers may be well aware of, China has been closely scrutinizing its alt-coin industry since the start of 2017. First, the government started by banning all ICOs taking place within its borders. Following this, they then proceeded to pass legislation that banned all local cryptocurrency trading exchanges w.e.f.

Final Take

Over the course of the past couple of years, the Chinese government has been trying to limit the clout of its mining industry by forcing many operators to move their businesses abroad.

Last but not least, one also has to remember that many Chinese mining firms are amongst the largest in the world and just last year, three of the nation’s largest operators launched IPOs in Hong Kong to raise billions of dollars.