According to an all-new report released by Reuters earlier today, the Chinese state planner has just released a draft of all the industrial activities it is looking to slowly weed out from within its economic framework. Bitcoin now falls in that last category.
Crypto mining was top of the Commission's list of practices that should be eliminated immediately. The Chinese public on the other hand has until May 7 to comment on the draft before it's finalized. CoinDesk points out, however, that the document is only a guide for future development, which may not have a real impact on Bitcoin mining in the country. Others such as managing partner at blockchain investment firm Kenetic, Jehan Chu, think it is part of a wider effort to control the industry; "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", he told Reuters.
China started its initial crackdown on cryptocurrency in 2017, when the government began banning initial coin offerings and shut down local cryptocurrency trading exchanges. While cryptocurrency mining might require large amounts of electricity, Bitcoiners often argue it's not necessarily wasteful or polluting.
China Bitcoin mining ban to bring FUD or a price frenzy?
It's estimated Chinese miners account for around 70% of global Bitcoin mining output.
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Countries with relatively cheap electricity have emerged as major hosts of cryptocurrency mining.
However, the two largest, Bitmain Technologies, the world's largest manufacturer of bitcoin mining gear, and Canaan Inc, have since let their applications lapse.
Due to its low-priced electricity, China has been the hotspot for 70 percent of all crypto mining-related activities.
People familiar with the deals said that Hong Kong regulators had many questions about the companies' business models and prospects.