Chinese Government Agency Wants Ban on Crypto Mining

Wilfred Michael 

Wilfred Michael

News reporter

09 April 2019,
08:55
Chinese Government Agency Wants Ban on Crypto Mining

China, home to some of the world’s largest cryptocurrency mining firms is reportedly facing a minor but yet significant challenge that could reverse its prestigious position in the industry.

On Monday, the China National Development and Reform Commission (NDRC) released a draft proposal detailing proposed changes for the country’s Catalog for Guiding Industry Restructuring.

That catalog lists industry practices that the agency believes the country should retain or abolish and sadly, the process of cryptocurrency mining is on the blacklist.

In the draft document, the NDRC labeled cryptocurrency mining as one of the few “undesirable” activities that doesn’t yield as much productivity as it contributes to environmental pollution in the country. For that reason, the agency recommends that the Chinese government halts such activity to save the environment and citizens.

Will the NDRC’s Recommendations Affect Chinese Crypto Mining Firms?

Certainly. However, the impact may not happen as quickly as some may presume. As Coindesk notes, the Catalogue is often used as a yardstick for future developments and may only come into effect a few years. The fact that the agency has reviewed the catalog three times before now means that any possibility of changes that will favor Chinese crypto mining firms cannot be ruled out at this point.

Additionally, members of the public would still have until May 7 to make an input into the proposed changes before the authorities finalize the requirements. If the process goes well, then the country may consider creating regulations for cryptocurrency mining firms to reduce the impact of their activities on the environment.

Last week, we reported the enactment of such regulations in Missoula County, Montana USA, noting that such measures can go a long way to make crypto mining safer without clamping down on mining firms.

Time will tell which way China finally decides to go, but we do know is that it could have a significant impact on the future of the global cryptocurrency ecosystem.

 

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