China's Economic Planner Seeks to Ban Crypto Mining

Lloyd Doyle
April 12, 2019

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 agency did not say how it plans to eliminate bitcoin mining but said it should be phased out immediately. Bloomberg News reports that having banned coin offerings in 2017, as well as asking local exchanges to stop trading, Chinse officials are preparing to go a step further.

China also began to limit cryptocurrency mining, forcing many firms - among them some of the world's largest - to find bases elsewhere.

China signalled its intent to ban cryptocurrency mining, dealing a fresh blow to an industry buffeted by tumbling virtual currency prices, stiff competition and waning investor interest.

Bitcoin listed among 450 items that NDRC believes should be banned.

Bitcoin mining, which is the process of creating new Bitcoin by employing computational power to solve an increasingly hard math puzzle and power Bitcoin's payment network at the same time, is primarily done in China.

China has had a tumultuous past when it comes to cryptocurrency and blockchain.

Taiwan Semiconductor Manufacturing Co (台積電) and Nvidia Corp are among listed chipmakers that supply cryptominers in China and around the world.

Among of the major effect on the environment is that bitcoin mining consumes too much electricity and poses heavy risks to ozone layer that could in turn result to global warming. The intertwined relationships between mining companies and local governments make it hard if not impossible to enforce effectively the ban, according to Zhong. In October, the principal and vice principal of a high school in the central Chinese province of Hunan were fired for mining cryptocurrency using school resources and putting a hefty RMB 17,158 (around $2,550) on the school's electricity bill. Canaan did not respond to requests for comment. It will be suggesting new laws that reflect crypto mining abilities which is not good capital and which will further add pollution.

Other reports by Iphone Fresh

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