Cryptocurrency Mining Back In Favor Of China

By Robert Hoogendoorn on ALTCOIN MAGAZINE

Robert Hoogendoorn
Nov 6 · 3 min read

The government of China has decided not to discourage and eliminate the cryptocurrency mining industry. This is a change from a draft earlier this year. The National Development and Reform Commission (NDRC) of China published new guidelines for local governments in which they list which industries they encourage, restrict or want to eliminate. The commission no longer mentions cryptocurrency mining on the elimination list.

The updated list follows a draft published in April. Seven months ago the NDRC considered the crypto mining industry to be unfavorable. However, the list by the NDRC would never be a direct ban on mining. It’s a guideline for local governments to allocate investments, balance resources and create economic stability. However, local laws and needs overrule the recommendations by the commission.

The NDRC has been changing its recommendations every few years. They started doing this in 2005 and label every industry with advice: encourage, restrict or eliminate. Most industries that are on the elimination list use obsolete techniques, products or technology. In addition, they can be unlawful, unsafe, wasteful or polluting the environment.

China is home to some of the biggest companies in the cryptocurrency mining space. Take Bitmain, Canaan, and Ebang for example. These are among the biggest manufacturers of cryptocurrency mining hardware, an industry that’s already worth billions of dollars.

No Recommendation Either

In October Chinese President Xi Jinping placed lots of emphasis on blockchain technology for the future of his country. For example, he wants to increase investments into the sector to ‘accelerate the development of blockchain technology and industrial innovation’. In addition, China passed a new set of guidelines for companies operating in the field of cryptography. The new law needs to encourage research and development on commercial cryptography technologies in China. They believe that standardization will help the blockchain market to grow.


Originally published at NEDEROB.


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Robert Hoogendoorn

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Content Optimization Expert & Copywriter. Learning about blockchain every day, sharing my knowledge and my passion with you.

ALTCOIN MAGAZINE

The best damn place to read and write about crypto and blockchain.

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