Chinese government wants to introduce a complete ban on cryptocurrency mining

The State Committee for Development and Reforms of the PRC, which is responsible for macroeconomic planning, classified cryptocurrency mining as «undesirable» industries that need to be liquidated due to their inefficiency.

In the draft of the new Catalog on industrial restructuring, all sectoral activities are divided into 3 groups, which, accordingly, should be encouraged, limited or eradicate. The bitcoin mining industry has been classified as undesirable, which usually includes areas with low performance, outdated technology or highly polluting.

However, so far the presented edition of the catalog is at the proposal level.. To become effective, the document must be approved by the public. Comments and feedback on the amendments made can be left until May 7, after which will approve the final allocation.

Although the catalog reflects general trends in the future development of the country’s economy, it actually recommends local authorities to support or hinder this or that activity. Since the document does not indicate a specific date for the start of the fight against miners, the liquidation process should unfold immediately after approval.

Chinese government wants to introduce a complete ban on cryptocurrency mining

Due to low electricity prices in China, the largest mining companies are located on its territory, even despite the partial government ban last year. Nevertheless, the authorities in every possible way are forcing businesses to move their production facilities to other countries..

Government of the Celestial Empire begins to intensify pressure on cryptoindustry since gradual growth market encourages citizens to mine and shadow exchange of virtual currencies.

text: Ivan Malichenko, photo: Shutterstock

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