China’s economic planning agency announced that they are looking to ban Bitcoin mining. They announced it in a report (written in Mandarin) that you can see here. Click below if you need a translation app.
According to an article from Reuters, China’s National Development and Reform Commission is seeking public opinions on a revised list of industries it wants to encourage, restrict or eliminate.
Of the new entries to that list, cryptocurrency mining was included. According to the NDRC, Bitcoin was hazardous to the country in several ways. It did not abide by regulations, was unsafe, wasted resources, and polluted the environment.
Bitcoin mining requires an incredible amount of electricity. As many of these mining operations are secret and unregulated, the electricity is often stolen.
The public has until May 7 to submit their opinion on whether or not Bitcoin will be eliminated. After that, Bitcoin’s fate is China will be decided.
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Read Now ►China’s battle with Bitcoin farms
China is home to about 70% of the world’s Bitcoin mining operations, known as “farms.” To put in perspective how much China has dominated this market, the next closest is India who operates about 4% of the world’s farms.
Last year, Chinese police officers seized about 600 mining computers. To help combat issues with electricity consumption, the Chinese government also called for Bitcoin miners to exit the industry. As a result, more than half a million Bitcoin miners are out of business.
What happens next?
Bitcoin mining operations started off small when they began popping up in China in 2015. As a result, they flew under the government’s radar. However, as Bitcoin value rose so did the government’s attention toward Bitcoin.
Most likely, China is not going to try to eliminate its Bitcoin industry altogether. As Bitcoin values haven’t suffered a major loss either, it seems like most everyone agrees.
The Chinese government likely realizes that their actions won’t stop some people from mining Bitcoin. However, that doesn’t mean that the country won’t do more to regulate the industry. By doing so, the country can tax it and the environment can be protected.
Bitcoin has been around for about a decade, but people have only paid close attention in the last few years. In that time, the industry has exploded and has gone through rapid changes.
