China is at a fork road right now as she considers banning cryptocurrency. On Monday, the NDRC, China’s National Development and Reform Commission released a list of sectors it plans to eliminate, restrict or promote. Crypto mining in china was listed among other sectors that the NDRC wanted to “eliminate”. According to a draft list of industrial activities, the economic agency wanted to eliminate these sectors because they “lacked safe production conditions, seriously wasted resources, polluted the environment,” among other issues.
Currently, the NDRC cannot exert regulatory power as it is still seeking the opinions of the public for its list of proposed to restrict or eliminate. Also, the agency has not explained how it plans to eliminate bitcoin mining in china or when it plans to do so, but public opinion on the draft is welcome until May 7th. The list contains more than 450 activities they do not adhere to relevant laws and regulations, or waste resources, pollute the environment and are unsafe. Cryptocurrency mining was added in the NDRC’S latest revision of the list.
Cryptocurrency mining is an activity that consumes a lot of electricity and a handful of persons have been arrested for illegal mining. It is presumed that 74 percent of global crypto mining occurs in China. And this is harmful to the earth as china has been known to be carbon-intensive. It is no news that Cryptocurrency itself has been under a lot of pressure from the Chinese government. Initial Coin Offering has been banned since 2017, local exchanges and trading platform has been closed, right now, cryptocurrency mining in china seems to be the next target.
While this move by China is largely questionable, Chinese companies are currently the largest suppliers of cryptocurrency mining gear and about 40% to 70% of the world’s mining power is concentrated in China. However despite the seeming gloomy future for cryptocurrency in China, bitcoin miners China are optimistic that most crypto miners will move abroad. However, despite the chaos going on, bitcoin keeps experiencing a gradual upward trend.
What do you think about the NDRC’s decision to eliminate crypto mining in China? Share your thoughts with me in the comment section below.