Bitcoin

China May Move To Ban Bitcoin Mining

China May Move To Ban Bitcoin Mining

China could move to ban mining for bitcoin, based on a draft list of industrial activities the country’s state planner wants to eliminate.

According to a report in Reuters, citing the National Development and Reform Commission (NDRC),China’s state planning agency is facing mounting pressure from the government to control the cryptocurrency market, and as a result may move to ban bitcoin mining. China is currently the biggest market for people to purchase computer hardware for cryptocurrency mining.

Reuters reported on Monday (April 8) that the NDRC said it is seeking public comments about the new list of industry practices that it wants to bolster, restrict or get rid of altogether, which was first made back in 2011. The public comment period ends on May 7.

The revised list now includes mining for bitcoin, along with more than 450 other practices that the agency said should be removed because they did not meet current laws and regulations, were deemed unsafe, wasted resources or harmed the environment.

This isn’t the first time the cryptocurrency market has faced increased scrutiny by the government of China. The country has been cracking down on cryptocurrency since 2017, when regulators first banned initial coin offerings and shuttered exchanges. It has also been clamping down on bitcoin mining, which has resulted in bitcoin mining operations setting up shop outside of China. Last year, three of China’s biggest makers of bitcoin mining gear filed to go public, but two of the biggest, Bitmain Technologies and Canaan, have not made moves since then to become publicly traded companies.

The move on the part of China comes as the price of bitcoin skyrocketed close to 20 percent last week, marking the best trading day since 2017. The price of bitcoin was able to surpass $5,000 for the first time since November. It’s not clear what drove the prices higher.

——————————

PYMNTS LIVE ROUNDTABLE: TUESDAY, JULY 14, 2020 AT 12:00 PM (ET)

Digital transformation has been forcefully accelerated, but how does that agility translate into the fight against COVID-era attacks and sophisticated identity threats? As millions embrace online everything, preserving digital trust now falls mostly on banks and FIs. Now, advances in identity data and using different weights on the payment mix afford new opportunities to arm organizations and their customers against cyberthreats. From the latest in machine learning for fraud and risk, to corporate treasury teams working in new ways with new datasets, learn from experts how digital identity, together with advances like real-time payments, combine to engender trust and enrich relationships.

TRENDING RIGHT NOW