Will China Take A Step Back When It Comes To Cryptocurrency
China’s Economic Planning Body Label Bitcoin mining an ‘undesirable’ industry
China has a significant number of miners and crypto enthusiasts and before the banning for circulation of the virtual currencies, it used to be the leader among the world’s countries when it comes to the volume of crypto trading. The people of China were the first who became interested in these virtual currencies. Hundreds of mining farms aroused in the country before it introduced the restrictions on token sales. In February 2018, China decided to remove all the inland or coastal platforms related to virtual currency trading or ICOs in order to prevent financial risks. But both crypto trading and ICOs were not totally withdrawn from China even after the official ban on it.
After shutting down the domestic virtual currency exchanges, all the traders ran towards the overseas platforms and continued trading cryptocurrencies. But the People’s Bank of China (PBOC) had also tightened the regulations on these domestic investors’ participation in all those overseas transactions of ICOs and virtual currencies. In spite of all these ICOs and Blockchain projects were banned, somehow the country still holds the position of being the capital of global cryptocurrency mining. That is why the Chinese government now wants to phase out China’s vast Bitcoin and cryptocurrency mining sector.
A Chinese central government agency called National Development and Reform Commission (NDRC), which is in charge of formulating the country’s macroeconomic policies has drafted a new proposal that would essentially ban all Bitcoin and cryptocurrency mining operations. The agency is labeling crypto mining as an “undesirable” industry in a proposal which was published in April 2019 and recommends the government of China that several industries need to be either encouraged or eliminated, specifically pointing the cryptocurrency mining sector that needs to be eliminated from the country. Because mining consumes an excessive amount of electricity for its operations, it has become the main reason for the agency members to eliminate this sector from China.
The National Development and Reform Commission has board administrative and planning control over the economy of China. It studies and formulates policies for China’s economic and political development, maintains these development balance and provides guidance when it comes to restructuring the country’s economic system. It was launched in 1998 and now it is one of the 26 cabinet-level departments that form the State Council of the central government of China.
However, public feedback is still pending and the people of China have time till 7th May 2019 to share their feedback on these announced modifications before Chinese government takes all these rules into effect and after receiving their feedback, the final version of the agreement will be published and become effective. We can just wait for that day and see whether all the proposed changes can or can’t impact cryptocurrency mining in China, as the country is still being the home for some of the world’s largest cryptocurrency mining equipment makers as well as mining farm operations. If all these modifications get approved, the miners of China will have bound to surrender their bases and move all the operations to other foreign countries.
Join us on telegram to stay tuned: https://t.me/digitalticksofficialnews
