Is China Going To Ban Crypto Mining?

On April 9, the coming altcoin news showed that many coins are mined in China – and that the Chinese government agency is considering the elimination of crypto mining in the country. Since China has been hosting the majority of mining pools on its land, the global crypto industry is definitely taking a big hit if something like this happens.

According to the reports by Reuters which are in the latest cryptocurrency news, Chinese authorities have been spearheading the “blockchain before Bitcoin” approach since 2017 and the country’s initial coin offerings (ICOs) ban which also banned traders from trading on crypto exchanges.

As of now, people in China are eligible to hold cryptocurrencies but are prohibited from trading them. The mining industry has also been subject to regulation of this kind. In February 2018, CNN Money published a report in which the Chinese government pushed crypto miners to make “an orderly exit” from the industry mostly due to tax issues and mining, both of which were seen as dangerous for the environment.

Another article published on Quartz a month earlier stirred the atmosphere and showed that the country’s top internet-finance regulator which is the Leading Group of Internet Financial Risks Remediation, has ordered local authorities to use all of their available options including “measures linked to electricity prices, land use, tax, and environmental protection” – to force miners to shut down their business.

In response to this crackdown, some of the largest mining players in China chose to move shop or even change their main line of business. For example, the Chinese ASIC chip manufacturer and mining outfit Bitmain has been experiencing significant difficulties caused by the bear market – and decided to turn to artificial intelligence (AI) as an alternate revenue source.

“As a China company, we have to be prepared,” Bitmain’s chief then said. The company also planned to relocate to Texas but had to cancel its plans due to the market collapse which occurred earlier this year.

If implemented, the new ban is likely to have a strong impact on the global crypto industry. In such case, part of the mining economy could move underground but the overall scope of mining operations won’t be the same for China.

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