Technology

China Looking to Ban Bitcoin Mining

Cryptocurrency has been criticized by Beijing and received an initial ban on coin offerings in 2017. 

The government of China is reportedly looking to ban Bitcoin rather all crypto mining. Reported by Reuters, on April 9, 2019, China’s National Development and Reform Commission (NDRC) is seeking for public opinions on a revised list of industries it wants to encourage, eliminate, and restrict. This list is known as ‘guiding catalogue for the adjustment of industrial structure’, which has been issued since 2005. Cryptocurrency, a process of creating digital currency was included in this list along with other sectors in the ‘to be eliminated’ chart which the agency found less safe and wasted resources.

Bitcoin has been in the news for its famous increment to US$ 20000 and then slumping to below US$ 4000. In the recent past, it has been valued at US$ 5000, the first time since November 2018. Along with Bitcoin, 450 other activities were included in that list that NDRC felt should be phased out. However, the agency has not set a target date for or plan for such actions that means such activities should be phased out immediately, the document said. The common public has until May 7, 2019, to comment on the draft.

Jehan Chu, managing partner at blockchain investment firm Kenetic expressed his view on this matter. “The NDRC’s move is in line overall with China’s desire to control different layers of the rapidly growing crypto industry, and does not yet signal a major shift in policy,” said Jehan Chu. If the ban is carried out, it would be a massive blow to a number of Chinese companies that were in the high tide of cryptocurrency. Moreover, the cryptocurrency has received stern criticism from Beijing over its fraud and speculations. However, we will have to wait how and when the government puts an end to this industry.