China adds crypto mining to “phased-out” industries, a ban revision or the final nail?

abdelaziz Fathi

China’s National Development and Reform Commission (NDRC) announced on October 21 that it is seeking public feedback on its proposal to include bitcoin mining on a list of “phased-out” industries. 

Some crypto media outlets claimed that the move effectively revises a sweeping ban by Beijing’s authorities against crypto miners. They further concluded that the influential agency’s suggestion was a reaction to the Bitcoin’s record prices – which went past $66,000 per coin –  as well as the US’s new-found dominance in the mining industry.

This explanation is, however, a bit of “misinformation, if not an outright falsehood,” said The Block. According to a recent report, a public consultation could be just a formality. For context, the publication said the Inner Mongolia DRC had previously released a proposal in May for specific measures to halt activities of Bitcoin miners.

At the time, it only had a public consultation period for seven days, instead of the usual one-month length. What makes the difference in the latest revision, according to The Block, is that the NDRC already clearly stated its intention a month ago.

“Following the crackdown directives from the State Council during the summer, the NDRC said on September 24 that it will once again revise the 2019 Catalogue to add crypto mining to the list of industries that should be eliminated. The commissioner didn’t formally print an update until a month later,” The Block explains.

Mainstream outlets in the region, including The South China Morning Post, also supported this interpretation and warned it could actually make things worse. The Hong Kong-based newspaper said the action marks the final nail in the coffin of Bitcoin mining activities in China.

The massive crackdown of China on crypto exchanges and miners has been ongoing for some time now. The largest-ever crackdown on crypto miners took place a few months ago, sending the largest crypto miners out of the country. One of the few large crypto trading companies still remaining in China was Huobi, which also had to leave the country.

The recent rules announced by the Chinese government on September 25 suggest that crypto transactions in China are fully banned. This includes services provided by offshore exchanges. In addition, the local laws also restrict platforms around the world to hire locals in China for roles such as marketing, tech, or payment.

As a result, the majority of the crypto miners in the country had to leave and find new jurisdictions for their activities. While some found homes in neighbouring countries, others moved further to the Western countries.

Read this next

Digital Assets

Russian Duma’s working group to address gaps in crypto regulation

A working group formed by the Russian State Duma to tackle the issues of cryptocurrency regulations is set to hold its first meetings, said the head of the parliamentary Financial Market Committee, Anatoly Aksakov.

Digital Assets

Kevin O’Leary says XRP lawsuit is “a very bad idea”

“I have zero interest in investing in litigation against the SEC, that is a very bad idea”.

Industry News

SFC freezes 17 client accounts on suspected ‘pump-and-dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has issued notices to two local brokers, instructing them to freeze certain client accounts suspected of market manipulation.

Retail FX

FSCS starts to offer LCF investors compensation under government scheme

The Financial Services Compensation Scheme (FSCS) has gone live with the government’s redress scheme to reimburse eligible London Capital & Finance victims.

Industry News

Aquis Exchange appoints Glenn Collinson as new Chair

Aquis Exchange, a group of companies that provide services for exchanges, has announced the appointment of Glenn Collinson as its new Chair and he would succeed Niki Beattie effective from January 1, 2022.

Digital Assets

Bitpanda onboards Lydia’s 5.5 million users to white label solution

Lydia has deployed the white label solution, with transactions made by the more than 5 million Lydia customers in a wide range of assets, from crypto to fractional stocks, being executed via Bitpanda for as little as EUR 1.

Digital Assets

Archax deploys Scila AB’s AML and surveillance tech for crypto trading

Scila is very much in tune with digital assets and cryptocurrencies and has some of the largest cryptocurrency exchanges and traders in its client roster.

Institutional FX, Retail FX

ATFX goes all in on US equities: FX broker adds 113 US stock CFDs

With the addition of 113 US stock CFDs, ATFX boasts more than  300 tradable instruments, 273 of which are stock CFD products.

Industry News

Citadel CEO outbids 17,000 crypto investors after winning Short Squeeze Lawsuit

Citadel Securities has been a key source of trading platforms’ revenue, which fed conspiracy theories that the US market maker leaned on their executives to end the short squeeze by restricting users from buying meme stocks.

<