China To Ban Bitcoin Mining

China’s state planner wants to eliminate bitcoin mining in the
country, according to a draft list of industrial activities the
agency is seeking to stop in a sign of growing government pressure
on the cryptocurrency sector.

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.

The National Development and Reform Commission (NDRC) said on
Monday it was seeking public opinions on a revised list of
industries it wants to encourage, restrict or eliminate. The list
was first published in 2011.

The draft for a revised list added cryptocurrency mining,
including that of bitcoin, to more than 450 activities the NDRC
said should be phased out as they did not adhere to relevant laws
and regulations, was unsafe, wasted resources or polluted the
environment.

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.

“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,
managing partner at blockchain investment firm Kinetic.

“I believe China simply wants to ‘reboot’ the crypto industry
into one that they have oversight on, the same approach they took
with the Internet.”

Other bitcoin traders said they were not surprised by the
government’s move Reuters reported.

“Bitcoin mining wastes a lot of electricity,” said one Chinese
bitcoin trader who declined to be named due to the sensitivity of
the situation.