Blow to Crypocurrency Business.. China Seeks to Eliminate Bitcoin Mining!

By: Yassmine ElSayed

CAIRO, Apr. 9 (SEE) – China’s state planner wants to eliminate bitcoin mining in the country, Reuters revealed.

In a draft list of industrial activities by the National Development and Reform Commission (NDRC),  cryptocurrency mining, including that of bitcoin, was added to more than 450 activities the NDRC said should be phased out as they did not adhere to relevant laws and regulations, were unsafe, wasted resources or polluted the environment.

According to Reuters, China is the world’s largest market for computer hardware designed to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area.

It did not stipulate a target date or plan for how to eliminate bitcoin mining, meaning that such activities should be phased out immediately, the document said. The public has until May 7 to comment on the draft.

State-owned newspaper Securities Times said on Tuesday the draft list “distinctly reflects the attitude of the country’s industrial policy” toward the cryptocurrency industry.

Last week, the price of bitcoin soared nearly 20 percent in its best day since the height of the 2017 bubble, and breaking $5,000 for the first time since mid-November, though analysts and traders admitted they were puzzled by the surge.

Bitcoin, which accounts for around half of the cryptocurrency market, was down by around 1.4 percent on Tuesday, while other major coins such as Ethereum and Ripple’s XRP also fell by similar amounts. Traders in London said it was unclear how much the Chinese move was weighing on the market.

The cryptocurrency sector has been under heavy scrutiny in China since 2017, when regulators started to ban initial coin offerings and shut local cryptocurrency trading exchanges.