According to Reuters News, China is planning to ban Bitcoin mining in the country because of the government pressure on the cryptocurrency market.
Altough Bitcoin mining is not strictly regulated in China, the country is the world’s largest market for miners and cryptocurrency mining.
The National Development and Reform Commission (NDRC) reported on April 8, to seek public opinions on a revised list that they first published in 2011.
The list contains 450 activities including cryptocurrency mining due to the view that Bitcoin mining’s not being adhere to relevant laws and regulations and being unsafe, wasting resources or polluting the environment.
However, there is not an exact plan to ban Bitcoin mining nor a target date. The deadline for commenting on the draft is until May 7.
Banning History of China
In China since 2017, the cryptocurrency market has been under pressure.
In September 2017, the People’s Bank of China (PBoC) banned initial coin offerings (ICOs). Moreover, some of local cryptocurrency trading exchanges have been shut down by the government.
Furthermore, the Chinese state made actions against crypto mining companies to reduce their power.
Based on reports in the beginning of 2018, officials were planning to restrict the power consumption to the Bitcoing mining and even asked local governments to put miners out of their own business. Such actions led miners to search for safe environment.
As an example to this situation, Bitmain relocated its headquarters in Singapore.
Reuters declared that “according to Canaan’s IPO prospectus filed last year sales of blockchain hardware primarily for cryptocurrency mining in China were worth 8.7 billion yuan ($1.30 billion) in 2017, 45 percent of global sales by value.
The prospectus forecasts that sales in China would rise to 35.6 billion yuan by 2020.”
In my opinion, these news will not affect the price of Bitcoin nor the demand on it.
This is not the first Chinese action and probably will not be the last.